Key Facts
• July 23, 2025: Equinor announces $955 million impairment on U.S. offshore wind projects.
• Impairment linked to U.S. policy changes, including tariff impacts and tax credit removal.
• Trump administration halted Empire Wind project citing insufficient environmental analysis.
• Construction halt later reversed, but steel tariffs raised project costs by $300 million.
• Tax credits remain for Empire Wind Phase 1 but removed for Phase 2.
• Equinor halts development of Empire Wind 2 due to regulatory and financial challenges.
• CFO Torgrim Reitan cites lack of investment incentives as a key factor.
Summary
Norwegian energy giant Equinor has reported a $955 million impairment related to its U.S. offshore wind projects, citing regulatory and financial challenges. The Trump administration’s earlier halt of the Empire Wind project, due to alleged insufficient environmental analysis by the Biden administration, was later reversed. However, tariffs on steel increased project costs by $300 million, and the removal of investment tax credits for new developments further impacted financial viability. While tax credits remain for Empire Wind Phase 1, they are no longer applicable to Phase 2. As a result, Equinor has decided to halt the development of Empire Wind 2. CFO Torgrim Reitan emphasized that without government support or tax incentives, the company cannot justify further investments in U.S. offshore wind projects.
