According to recent reports, energy giants Equinor and BP announced the cancellation of a contract for a massive offshore wind project originally intended for construction off the coast of New York. The companies cited economic and commercial concerns as the main drivers behind the cancellation of the contract.
Reportedly, Equinor and BP reached an agreement with the New York State Energy Research and Development Authority (NYSERDA) to scrap the renewable energy certificate for the Empire Wind 2 project. According to the companies, macroeconomic variables such as inflation, supply chains, and the challenging interest rate environment prevented the contract from being fulfilled.
Molly Morris, president of Equinor Renewables Americas, explained the current “commercial viability” did not align with the project’s enormous scale. However, Morris indicated that the company will return to the drawing board to develop a more successful endeavor.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” Morris said. “We will continue to closely engage our many community partners across the state.”
Despite the failure of Empire Wind 2, BP President of Offshore Wind Americas Joshua Weinstein maintains that the future of green energy remains bright as it could serve as a “critical” aspect of America’s energy mix going forward.
“BP is supportive of NYSERDA’s leadership and commitment to offshore wind, which we believe is a critical part of New York State’s and America’s clean energy future,” said Weinstein. “Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities.”
The offshore project’s cancellation follows the Biden administration’s recent approval of Empire Wind 1 and 2 late last year. Biden’s White House had celebrated the projects as a supposed example of how “Bidenomics” is driving the U.S. economy in the right direction.
“Under President Biden’s leadership, the American offshore wind industry is continuing to expand rapidly — creating good-paying union jobs across the manufacturing, shipbuilding and construction sectors,” Interior Secretary Deb Haaland stated after approving Empire Wind 2 in November. “Today’s approval of the sixth offshore wind project adds to the significant progress towards our Administration’s clean energy goals.”
However, the collapse of Empire Wind 2 does not appear to be an isolated event in the green energy industry. Energy developer Orsted recently canceled projects Ocean Wind 1 and Ocean Wind 2, which were also approved and endorsed by the Biden administration. Like BP and Equinor, Orsted cited unfavorable economic conditions, further suggesting a disconnect between “Bidenomics” and the reality of the U.S. economy.
The Democrat led-green energy agenda has also suffered blows in other areas such as EVs. Despite billions of taxpayer-funded investments and subsidies from the Biden administration, recent data suggests such initiatives are not aligned with consumers’ preferences. The American Tribune recently reported that EVs are “piling up” on car lots regardless of the push for electric adoption. Furthermore, thousands of car dealers nationwide joined in an open letter to Joe Biden, urging him to “tap the brakes” on the “unrealistic” ambitions to impose EV mandates.
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