An executive from Equinor detailed the severe financial and strategic consequences that former US President Donald Trump's actions had on the company's Empire Wind offshore wind project and its global portfolio.

Financial Impact of the Stop Work Order and Tariffs

The direct financial impact on the Empire Wind project was approximately $1.3 billion. A stop work order issued by Trump while the 810 MW project was under construction cost Equinor around $1 billion. Although the order was lifted after a month of intense negotiations, the company faced an additional $300 million in costs due to Trump's stop-start tariffs, creating continued market uncertainty.

Global Portfolio Consequences

The event had a significant 'knock on impact' on Equinor's global portfolio, diverting limited capital and forcing strategic reassessments. This was evidenced by Equinor's withdrawal from several international projects, including abandoning a 2 GW floating wind project off New South Wales, Australia, an action directly linked to the US chaos. Furthermore, the company's Firefly floating offshore wind project in South Korea faces uncertainty, with missed deadlines attributed to cost considerations.

Specific Project Cancellations and Strategic Shifts

In direct response to Trump's actions, Equinor also stopped its Empire Wind 2 project in the US. Despite these setbacks in some regions, the company has maintained its position in floating wind, emerging as a winner in a recent Celtic Sea leasing round in the UK.

Broader Industry Perspective

Another developer, RWE, also affected by Trump's policies, acknowledged the challenges but emphasized that the long-term fundamental energy demand in the US means offshore wind remains a very good way to supply power, indicating an underlying strength in the market despite political disruptions.