Equinor And National Grid Compete For Offshore Wind Dominance In NY's Clean Energy Drive: Report
Portfolio Pulse from Lekha Gupta
Equinor ASA (NYSE:EQNR) and National Grid PLC (NYSE:NGG) are among the energy companies that have submitted bids to the New York State Energy Research and Development Authority (NYSERDA) for three offshore wind projects. This comes after a challenging period in 2023 with canceled contracts due to inflation, interest rates, and supply chain issues. Equinor recently gained full ownership of Empire Wind and South Brooklyn Marine Terminal from BP PLC (NYSE:BP), enhancing its position in New York's clean energy drive. Equinor expects to begin construction in the first half of this year, with the first power expected in 2026 and commercial operation by 2027.
January 29, 2024 | 12:18 pm
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NEUTRAL IMPACT
BP PLC has transferred full ownership of Empire Wind and South Brooklyn Marine Terminal to Equinor, focusing on Beacon Wind projects.
BP's deal with Equinor indicates a strategic move to focus on Beacon Wind projects. The impact on BP's stock is neutral short-term as the deal is described as cash-neutral and part of a strategic realignment rather than a direct growth opportunity.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Equinor ASA is in the running for offshore wind projects in NY, has begun construction at South Brooklyn Marine Terminal, and expects first power by 2026 with commercial operations in 2027.
Equinor's involvement in the NY offshore wind projects and the recent acquisition of full ownership of relevant assets from BP indicate a strong commitment to the clean energy sector in NY, which is likely to be viewed positively by investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
National Grid PLC has also submitted bids for the NY offshore wind projects, competing with Equinor for a stake in the state's clean energy initiative.
National Grid's bid for the NY offshore wind projects shows its active participation in the clean energy sector. While less information is provided about their specific plans compared to Equinor, their involvement still suggests potential growth in this area.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70