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24 March 2022

Equinor and BP to create US offshore wind hub

The two oil and gas giants intend to transform a New York marine terminal into a central hub for offshore wind activities off the US East Coast.

By Energy Monitor Staff

Equinor and BP have announced they will convert the South Brooklyn Marine Terminal in Brooklyn, New York, into an offshore wind hub.

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
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The companies will invest $200–250m in infrastructure upgrades to create an operations and maintenance hub, as well as a staging area for their joint Empire Wind and Beacon Wind projects. Together, these should produce 3.3GW, or enough electricity to power nearly two million homes in the New York area, when completed.

Picture 1
An aerial view of South Brooklyn Marine Terminal against a Manhattan backdrop. (Photo by Ed Jones/AFP Via Getty Images)

“This agreement marks a major step forward in our commitment to New York State to both provide renewable power and to spark fresh economic activity, while creating enduring jobs,” said Siri Espedal Kindem, president of Equinor Wind US, in a press release on 3 March.

In addition to the 73.1-acre development, Equinor announced in December 2021 the opening of a New York offshore wind project office in Industry City, which is adjacent to the South Brooklyn Marine Terminal.

Oil and gas companies are increasingly looking to pivot to offshore wind, with Equinor leading the way. It expects offshore wind to account for two-thirds of its targeted 12–16GW of global renewables capacity by 2030.

BP aims to become net zero by 2050. Like the other oil majors, it too is building renewables businesses.

In Europe and elsewhere, wind capacity deployments remain below what is needed to avoid dangerous climate change. A green Covid recovery could add 20GW of wind power in key developing economies, concluded a new report by the Global Wind Energy Council in February 2022.

Free Report
img

Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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