(WASHINGTON) — U.S. Interior Secretary Doug Burgum has ordered a halt to construction of Equinor’s Empire Wind project off the coast of New York, saying information suggested the Biden administration approved it without enough environmental analysis, Reuters reported.
In a post on X on Wednesday, Burgum said the information would be reviewed further but did not elaborate on the faults identified.
The sudden order marks a major blow to Norway’s Equinor and the nascent U.S. offshore wind industry, which enjoyed substantial support as part of former President Biden’s plan to decarbonize the power grid and combat climate change.
An Equinor representative said the company had received the stop-work order from the U.S. Bureau of Ocean Energy Management (BOEM), the Interior arm that permits offshore energy projects.
“We will engage directly with BOEM and the Department of Interior to understand the questions raised about the permits we have received from authorities,” Equinor said. “We will not comment about the potential consequences until we know more.”
Burgum said he had consulted with Commerce Secretary Howard Lutnick on the decision. Commerce houses the National Marine Fisheries Service, which is involved in permitting offshore wind facilities.
The Interior Department decision stems from a review of offshore wind permitting and leasing that President Trump ordered on his first day back in the Oval Office in January. Interior officials did not respond to a request for additional comment.
Since the January order, the offshore wind industry has sought to position itself as being aligned with Trump’s domestic energy agenda. Trade groups reacted with disappointment following Burgum’s announcement.
“Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda,” said Jason Grumet, CEO of the American Clean Power Association.
“With skyrocketing energy demand and increasing consumer prices, we need streamlined permitting for all domestic energy resources. Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment,” he added.
Empire Wind was approved by the Biden administration in November 2023 and began construction last year. The lease area, which will house two projects, is located 12 nautical miles south of Long Island, N.Y. The facilities together are expected to generate enough electricity to power 700,000 homes a year.
Equinor said in February it had already invested $2 billion in the project out of $7 billion, with the remainder expected to be covered by project financing and investment tax credits.
