Equinor, BP Terminate Offshore Wind Power Sale Contract With New York
Portfolio Pulse from Shivani Kumaresan
Equinor ASA (NYSE:EQNR) and BP plc (NYSE:BP) have terminated their Offshore Wind Renewable Energy Certificate (OREC) Agreement with NYSERDA for the Empire Wind 2 project due to economic reasons such as inflation, interest rates, and supply chain disruptions. The Empire Wind 1 project remains active. The U.S. is a key growth market for Equinor, aiming for 12-16 GW of renewables capacity by 2030. Offshore wind energy project progress has slowed in 2023 across various states.
January 04, 2024 | 11:38 am
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NEUTRAL IMPACT
BP plc, in partnership with Equinor, has terminated the Empire Wind 2 project agreement with NYSERDA due to economic challenges.
While the termination of the Empire Wind 2 project is negative news, BP's diversified energy portfolio and the ongoing Empire Wind 1 project may mitigate any adverse short-term impact on BP's stock.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
Equinor ASA terminated the Empire Wind 2 project agreement due to economic factors, but remains committed to U.S. renewables growth with a 12-16 GW target by 2030.
Termination of the Empire Wind 2 project may be seen as a setback, but Equinor's commitment to U.S. renewables growth and the active status of Empire Wind 1 project could neutralize short-term impact on the stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80