The Trump administration has issued an order to suspend the construction of a significant offshore wind farm off the coast of New York, marking another setback for the struggling renewable energy sector.

The Empire Wind project, developed by Equinor and located approximately 15 miles south of Long Island, initiated construction last year and was expected to begin generating electricity by the end of 2024.

This wind farm is planned to feature 54 turbines, each towering at 951 ft, and is expected to produce around 810 megawatts of energy. Equinor estimates that this capacity could power approximately 500,000 homes in New York.

Doug Burgum, the U.S. Secretary of the Interior, announced on social media that he is directing the Bureau of Ocean Energy Management (BOEM) to “immediately halt all construction activities on the Empire Wind Project until we can review information suggesting that the Biden administration may have expedited its approval without thorough analysis.”

Equinor, which is primarily owned by the Norwegian government, stated, “We will work directly with BOEM and the Department of the Interior to clarify the issues raised about the permits we have received. We will refrain from commenting on potential repercussions until we have more information.”

Equinor is not alone; it joins other companies like Orsted and BP that ventured into the emerging U.S. offshore wind market but faced significant financial losses due to rising costs and regulatory challenges.

The seabed lease for Empire Wind was finalized during President Trump’s initial term, and the necessary permits were granted under the Biden administration.

On his first day of his second term, President Trump mandated a halt to new offshore wind leases and permits pending a process review. He referenced “alleged legal deficiencies related to the federal government’s leasing and permitting of both onshore and offshore wind projects, which could result in severe consequences, including adverse effects on navigational safety, transportation, national security, commercial interests, and marine wildlife.”

In announcing the suspension of the Empire Wind project, Burgum referred to the review Trump had initiated and emphasized the Department of the Interior’s commitment to ensure compliance with the directions provided. This intervention surprised many within the industry, considering the project had already received full permitting.

Equinor commenced onshore construction for Empire Wind at the South Brooklyn Marine Terminal in the spring of the previous year. They noted that “marine activities will restart in spring 2025, commencing with rock placement within the lease area.”

Analysts from Jefferies remarked, “This development poses a significant risk to U.S. offshore wind initiatives and underscores the vulnerabilities associated with assets that are currently under construction or have received permits.”