Equinor Faces $1bn Setback Due to US Wind Farm Policies and Tariffs

Norwegian energy giant Equinor reports a nearly $1bn devaluation of its New York offshore wind project, citing regulatory hurdles and increased tariffs. Despite challenges, the project remains profitable.

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Equinor’s Wind Energy Project Hit by Regulatory and Tariff Challenges

Norwegian energy company Equinor announced a significant financial impairment of $955 million related to its Empire Wind offshore wind project in New York, attributing the loss to recent regulatory changes and heightened tariffs imposed by the US administration.

Project Delays and Policy Shifts

The Empire Wind project, designed to power half a million homes in Brooklyn with its 54 turbines, faced temporary suspension by the US government in April. This move was part of a broader skepticism towards wind energy by the administration, which criticized the aesthetics and safety of wind turbines.

Recovery and Future Prospects

Despite the setbacks, Equinor has resumed development on the Empire Wind 1 project, emphasizing its commitment to renewable energy. The company highlighted the project’s profitability, even as it navigates the challenges posed by current regulatory and tariff landscapes.

Financial Impact

The impairment has notably affected Equinor’s second-quarter results, with a 30% drop in net profit to $1.3 billion. The decline was also influenced by fluctuating oil prices, despite increases in natural gas prices and production levels.

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