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April 17 (Reuters) – The Trump administration’s decision to halt construction of Equinor’s (EQNR.OL) Empire Wind 1 farm off the coast of New York late on Wednesday sent shockwaves through the offshore wind industry, raising concerns that fully-permitted developments representing billions in investment are not safe.
U.S. President Donald Trump had campaigned on a promise to end the offshore wind industry, arguing it is too expensive and hurts whales and birds. He issued an executive order suspending new leasing for such projects in federal waters on his first day in office.
But in a move that extended well beyond withholding new lease auctions or slow-rolling new permit requests, Trump’s Interior Secretary Doug Burgum on Wednesday ordered the Equinor project to cease construction work, suggesting the project’s underlying environmental analysis was faulty.
“Stopping work on the fully federally permitted Empire Wind 1 offshore project should send chills across all industries investing in and holding contracts with the United States Government,” said Liz Burdock, the CEO of industry group Oceantic Network, after Burgum’s order.
“Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses – beyond those in the offshore wind industry – that their investment in the U.S. is not safe.”
Empire Wind’s supply chain has attracted $1.6 billion in investment and supports more than 3,500 jobs, said Oceantic, which advocates for the expansion of a domestic offshore wind supply chain.
The industry as a whole is expected to invest $65 billion in projects by 2030, according to a report last year by the American Clean Power Association trade group.
Other industry representatives said the move jarred with the Trump administration’s broader plans to expand domestic energy production.
“The widening gap between rising electricity demand and available energy supply poses a serious threat to economic growth,” said Turn Forward Executive Director Hillary Bright. “It is in our clear national interest to boost the deployment of valuable energy resources like offshore wind.”
An Interior spokesperson was not immediately available for comment.
Equinor said on Wednesday it had stopped construction as requested, and would engage with the Trump administration to better understand its concerns about the project’s permit.
‘CHILLING EFFECT’
The United States has four operating offshore wind farms. Aside from Empire Wind, another three are under construction. Two are owned by Denmark’s Orsted (ORSTED.CO): Sunrise Wind off the coast of New York and Revolution Wind off the coast of Rhode Island.
Dominion Energy’s (D.N) Coastal Virginia Offshore Wind is also underway. All three are expected to begin producing power next year.
“Coastal Virginia Offshore Wind is more than 50% complete and remains on track to be completed at the end of 2026. Our other lease areas are potential options for future development, but we do not have any firm plans at this time,” Dominion spokesperson Aaron Ruby said in an email.
Orsted declined to comment.
The National Ocean Industries Association, another industry group that includes offshore wind and oil drilling businesses, said it hoped to resolve any disputes with the Trump administration so it could pursue new projects.
“We are committed to working closely and expeditiously with federal agencies, stakeholders, and the administration to quickly resolve any concerns and deliver energy solutions that align with national priorities,” said President Erik Milito.
Environmental group the League of Conservation Voters (LCV), however, said the reversal on Equinor’s permit would foster uncertainty in the broader business world and undermine confidence needed for new investments.
“If the government cannot be trusted to keep its word honoring permits after thorough environmental reviews, it will have a chilling effect not just against clean energy but the entire business sector,” said David Shadburn, Legislative Director at LCV. “The absolute last thing the country needs is a ban on clean affordable energy.”
Reporting by Nichola Groom; Editing by Aurora Ellis
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