Offshore Wind Project to Power New York City Homes

As the global energy transition progresses, offshore wind plays a vital role in helping countries advance towards their sustainability and renewable energy targets. 

Between 2024 and 2034, the global offshore wind market is expected¹ to grow from roughly USD 39 billion to USD 215 billion. In the United States, many projects have recently progressed from the permitting and regulatory stages into construction and operating phases. Eight states have set procurement mandates that total 45 gigawatts (GW) of offshore wind capacity by 2040².

Development of offshore wind sites is often a complex and expensive undertaking given the volatility of wind and storm conditions at sea. Within the US, however, the Atlantic Coast is an ideal site for harnessing and delivering wind energy as it provides a consistent supply of strong winds and is close to major population centers on the East Coast. New York State, in particular, has significant potential to become an offshore energy hub and has set a target for generating 9,000 megawatts (MW) in offshore wind by 2035. 

2 GW of energy to power 1 million New York homes

With this lofty ambition on the horizon, international energy company Equinor is constructing the first phase of an offshore wind project located southeast of Long Island called Empire Wind. Once complete, both phases of the project will have the combined capacity to generate 2 GW of renewable energy – enough to power 1 million New York homes – and will be the first offshore wind project to connect directly to the New York City grid. 

The power from Empire Wind will be transported via cables under the seabed to a new electrical substation being developed at the South Brooklyn Marine Terminal (SBMT). Upon completion, SBMT will be one of the largest offshore wind port facilities in the US and will support future offshore wind developments in the region.

Societe Generale acted as the Financial Advisor and Coordinating Lead Arranger for the USD 3.3 billion financing for the first phase of the project, Empire Wind 1. The deal furthers Societe Generale’s leadership in advisory and arranging for offshore wind globally. Since 2018, the Bank has been involved in 53 transactions in Europe, Asia and the US for over USD 5.1 billion³.

“Empire Wind will be central to making New York America’s offshore wind hub, while helping both the state and the nation reach their offshore wind and renewable energy targets,” said Ahmed Maqsood, a banker in Societe Generale Americas’ Energy+ Group, who led the advisory team on the project. “We’re committed to advancing the global energy transition by serving as a leader in the renewables market. We look forward to continuing to build upon our extensive history of project financing across the offshore wind and renewable energy market and to help facilitate the growth of this sector in the US. Taking on an advisory role to support first movers in the US market like Equinor helps achieve that.”

1 Offshore Wind Energy Market Size to Reach USD 215.5 Billion by 2034
2 Last Year in Review: Commercial Offshore Wind Energy Making Tangible Gains | News | NREL
3 Source: IJ Global