Offshore wind deal

Investment Analysis Clubs Macro Economic Trends and Risks
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Norwegian energy company Equinor will resume construction on its offshore wind farm in New York, after the Trump administration lifted its order to halt work on the project. Empire Wind 1 will be the first offshore wind project to deliver electricity directly to New York City…

Interior Secretary Doug Burgum ordered construction on Empire Wind to stop on April 16, alleging the Biden administration rushed the project’s approval “without sufficient analysis or consultation among the relevant agencies as relates to the potential effects.”…

New York Gov. Kathy Hochul said Monday evening that Burgum and President Trump agreed to lift the stop-work order and allow the project to move forward “after countless conversations with Equinor and White House officials.”…

Burgum said he was encouraged by Hochul’s “willingness to move forward on critical pipeline capacity. Americans who live in New York and New England would see significant economic benefits and lower utility costs from increased access to reliable, affordable, clean American natural gas,” the Interior secretary said…Hochul did not mention natural gas in her statement, though she “reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements” under state law.

DB2

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The NG part of the deal looks a bit iffy as NY state opposes new pipelines. Their Marcelus shale remains undeveloped. Goveners agreement to support NG under limits of state law is a plus but will it hapoen?

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It may depend upon how badly they want the Empire project. IIRC, the state’s future energy schemes are almost entirely dependent upon offshore wind.

DB2

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Marcelus shale has potential to supply much NG virtually in their backyard. But New Yorkers are concerned about fracking and groundwater contamination. We don’t hear much about carbon dioxide emission there. Yes, wind could make a big difference.

Niagara Falls and Canada do provide lots of hydropower though big blackouts from decades ago remind us that long distance transmission lines can be vulnerable in a big storm. Local backup and diversification are needed for reliability.