The US renewable energy industry is reeling in the wake of Donald Trump’s extraordinary intervention, in which the US president ordered Norwegian giant Equinor to halt construction of its fully permitted and shovel ready 810MW Empire Wind 1 offshore wind farm off the coast of New York.
The stop-work order, conveyed to Equinor in a notice from the Bureau of Ocean Energy Management (BOEM) last week, appears to be based on claims from the Department of the Interior that approvals for the Empire Wind project were “rushed through by the prior Administration.”
And while Equinor has issued a relatively sanguine response to say it is weighing possible “legal remedies, including appealing the order,” the reaction from industry and US stakeholders in the project has ranged from shock to condemnation.
New York governor Kathy Hochul was among the first to slam the move by Trump, describing it as “federal overreach” and warning that it will affect hundreds of New Yorkers, “including 1,000 good-paying union jobs.”
“As Governor, I will not allow this federal overreach to stand,” said Hochul. “I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future.”
The New York State Energy Research and Development Authority (NYSERDA) said the project had undergone extensive and robust federal reviews and received all state and federal permits – including securing the lease for the project site from the former Trump administration.
“The federal government’s interference not only ignores the reality surrounding the future energy security of our state and country, it’s fueled by a shortsighted, political agenda that ignores the well-demonstrated economic benefits that this industry can provide as the state and nation work to ensure an affordable, reliable and abundant energy supply for future generations,” said Doreen M. Harris, president and CEO of NYSERDA.
“The irrefutable harm created by this action will send a chilling signal to any party investing in the US market, all of whom rely on regulatory certainty,” Harris said.
The “chilling signal” warning was echoed by the Liz Burdock, president and CEO of Oceantic Network.
“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,” Burdock said in a statement.
“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 US is not safe.”
American Clean Power Association (ACP), the country’s leading trade body representing the clean energy industry, also weighed in.
“Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda,” said Jason Grumet, ACP CEO.
“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.”
Spyros Koutsos, a senior wind energy consultant with TÜV SÜD, says that in nearly 15 years in the industry he has “never seen anything quite like this.”
“We all knew offshore wind in the US wouldn’t have an easy ride over the next few years. Rising costs, permitting delays, supply‑chain challenges – we saw it coming,” Koutsos writes on LinkedIn. “But I didn’t expect a shovel‑ready project to be stopped cold.
“Empire Wind 1, led by Equinor, wasn’t just a drawing on paper. It was ready to go. Turbine ordered. Cables contracted. Foundations in production.
Everything lined up to deliver clean power to 500,000 New York households.
“Some of the most committed European partners – who backed this market early with unprecedented commitments to local content – are now left stuck,” Koutsos says, pointing in particular to Danish giant Vestas, which is supplying 54 turbines for the project through its US‑based pre‑assembly, logistics and commissioning teams.
“I’ve worked through my share of difficult cycles… But this? This looks different,” he adds. “A shovel‑ready project getting halted raises serious questions about trust, risk, and long‑term commitment to the US offshore wind market.
“As someone who works closely with developers, suppliers, and stakeholders on both sides of the pond, I see how moments like this shape future investment decisions.”
Empire Wind 1 was granted construction and operation approval by the US department of the interior in November of 2023, followed a few months later by approval of its specific construction and operations plans.
This followed initial site assessment dating back to 2018 and traditional environmental impact reports and approvals filed and approved throughout 2022 and 2023.
Equinor was therefore able to close project financing for the project earlier this year and take a final investment decision, before initiating construction at the beginning of April with the initial subsea rock installation.
The stop-work order comes as the Trump administration continues to announce a flurry of approvals for offshore oil and gas leasing and a promise to “on longer pursue lengthy analysis for oil and gas leasing decisions”.
“The federal lease for Empire Wind was signed with the US Administration in 2017. Empire Wind 1 has validly secured all necessary federal and state permits and is currently under construction. The project is being developed under contract with New York State Energy Research and Development Authority (NYSERDA) to provide an important new source of electricity for the State of New York. The construction phase has put more than 1,500 people to work in the US. Empire wind 1 has the potential to power 500,000 New York homes.
“Empire is complying with the order affecting project activities for Empire Wind. Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.”
