US opens review of Equinor-BP's multi-gigawatt Beacon Wind giant off New York

Developer duo already has some 3.3GW on contract to state, with federal environmental impact statement covering additional acreage bid into round 3

Molly Morris, Equinor’s renewables CEO in the Americas.
Molly Morris, Equinor’s renewables CEO in the Americas.Foto: Equinor

The federal government will begin the environmental review process for Equinor-BP’s massive, 2.4GW, 155-turbine Beacon Wind project slated for the state of New York, the lead regulator of energy development in US waters announced.

The Bureau of Ocean Energy Management (BOEM) will publish its notice of intent (NOI) to begin the environment review for the project in the Federal Register, the nation’s journal of record, on 30 June, opening a 30-day comment period.

“BOEM is advancing the [Biden] administration’s ambitious energy goals while remaining diligent in our efforts to avoid, minimise, and mitigate impacts to ocean users and the marine environment,” said BOEM director Elizabeth Klein.

“As part of our environmental review process, we seek input from Tribes, our government partners, the fishing community, and other ocean users to inform our next steps.”

The oil-heavy Equinor-BP joint venture (JV) is New York’s largest offshore wind developer, with some 3.3GW of capacity of the total 4.3GW under state contract. The remainder is being developed by the Orsted-Eversource JV backing the South Fork and Sunrise projects.

The developer was awarded its 2.1GW Empire Wind project over successive state tenders in 2019 and 2021. Its 1.23GW Beacon Wind 1 was also awarded in the state's round 2 solicitation in 2021.
The Equinor-led JV has bid the remaining acreage in the Beacon lease into New York’s round 3. The zone is located 17 nautical miles (31 km) south of Martha’s Vineyard in the Massachusetts wind energy area some 96 km from New York’s easternmost point at Montauk, Long Island.

The construction and operations plan (COP) submitted by the partners covers both projects, potentially giving it a leg up on the competition in the round that will see as much as 4.7GW awarded.

The environmental impact statement (EIS) process involves multiple federal agencies and can take years to complete, even as New York is rushing to build out 9GW of capacity by 2035. Beginning the EIS process now can potentially shave years off overall project timelines.

“The NOI marks a significant milestone in Beacon Wind’s path towards regulatory approval,” said Molly Morris, Equinor’s renewables CEO in the Americas. Equinor is the lead partner developing the projects.

A further award would give the JV over 4GW of capacity, nearly half of the state goal, however.

Already, the Equinor-BP team is petitioning the New York State Energy Research & Development Authority (Nyserda), the state agency overseeing the sector, to reopen offtake contracts it says are no longer viable amid high inflation and interest rates and supply chain disruptions caused by the pandemic and war in Ukraine.
“These unforeseen events have significantly reduced the projects' ability to attract the approximate [dollar amount] of investment needed to support construction and operations in a global, competitive capital market,” the partners told officials, as reported by Recharge’s Norwegian sister publication DN.

Projects spark capex

The Equinor-led JV is backing some of the largest port and supply chain investments in the US, including the $250m South Brooklyn Marine Terminal (SBMT) renovation. SBMT is in the frame for marshalling and assembly of all the JV’s capacity.

Danish shipping giant Maersk has been contracted for the installation of both the Empire and Beacon projects, and has commissioned Singaporean shipbuilder Sembcorp Marine to construct a new, innovative wind turbine installation vessel (WTIV) for the projects.

The Denmark-flagged WTIV will be customised for the feeder barge solution being deployed for the US sector in compliance with the Jones Act.

The Jones Act prohibits foreign-flagged vessels from calling in at consecutive US ports or points, including an offshore wind turbine. As the US currently lacks any US-flagged WTIV and with only one, the Charybdis, under construction in Brownsville, Texas, most projects will rely on a domestic barges to feed components to a foreign-flagged WTIV that would remain at the installation site.

The developers are likewise backing tower manufacturing facility at the upstate New York Port of Coeymans some 140km north of New York City.

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Published 29 June 2023, 17:00Updated 29 June 2023, 17:30
AmericasUSNew YorkEquinorBP