Empire Wind 2 Project terminates

A few months ago, Orsted terminated a major wind project. Now, Equinor and BP are terminating the Empire Wind 2 Project


Aside from the large price increases asked for, we read of some hubris:

Bendo [Long Beach City Council president] faults the wind developer, Equinor, for not addressing the community’s concerns.

“We begged them to implement some kind of public engagement process to talk to the residents. If you want to sell your project to residents, you need to explain to them what benefits are there for them,” Bendo said. “And they just did nothing. They didn’t lift a finger.”


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Meanwhile WSJ reported that two wind farms off shore New York and Massachusetts made grid connects and began producing power this week.


Here’s a snippet on the MA project–

Baby steps - one turbine to start, 60+ to follow :slight_smile:


Definitely some headwinds. I didn’t know that solar prices increased. From a November article:

Biden’s clean energy agenda faces mounting headwinds
Solar contract prices rose 4% to hit $50/MWh for the first time this decade in the third quarter, according to tracking firm LevelTen.


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The news could impact the Capital Region as the wind towers for Empire 2 are supposed to be manufactured at a yet-unbuilt facility at the Port of Albany…This raises further questions about when and if the Port of Albany will build its wind tower facility, which is stalled amid rising costs…

The port is hoping to host a partnership between the Marmen and Welcon, Canadian and Danish firms, seeking to build the massive wind towers that support offshore blades and turbines. Their planned factory, which would lead to hundreds of jobs, has yet to be built. It is stalled by rising costs and a lack of private financing beyond the initial investment by the state…

Precisely how these events may hit consumer energy costs in the future and how they will impact timelines for weaning off of fossil fuels is unclear.


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Its a surprise that wind energy turns out to be especially sensitive to inflation. Long lead times seems to be part of the reason. All participants seem to agree its a problem.

Do you think they are more sensitive than other large construction projects? I’m thinking subways in New York City and the high-speed rail boondoggle in California.


I don’t know anything about the NYC subway projects. California high speed rail is completely different.

All the wind turbine manufacturers are reporting losses due to rising costs. They are forced to fill contracts at a loss. Their cost escalators were inadequate. So now they are demanding much better cost escalators but then cost of the project becomes an unknown.

Costs are apparently for raw materials, labor, shipping, and shortages of some equipment. Not sure if that relates to the subway project.

Cost uncertainty makes financing and sponsoring utilities nervous. They don’t know if the electricity can be sold at a profit or not. It becomes a blank check project.

Once inflation is under control, wind farms should be practical. But for now they are risky. Reminds us of the importance of controlling inflation.