The U.S. offshore wind industry has been dealt a major setback as the federal government abruptly halted construction on Equinor’s $5 billion Empire Wind project, the largest offshore wind development planned for New York City. The move jeopardizes more than $40 billion in offshore wind investments and casts uncertainty over 90% of planned U.S. wind capacity, according to industry analysts.
The directive, issued by U.S. Interior Secretary Doug Burgum, cites a “flawed and hastily conducted permitting process” under the previous administration. Approved in late 2023, the 810-megawatt project had already begun construction and was expected to generate 1,000 jobs, forming a cornerstone of New York’s clean energy strategy.
The suspension follows President Trump’s executive order in January to pause all new offshore wind leasing and review existing approvals—part of a broader rollback on renewable energy policies. Major developers, including Shell and TotalEnergies, have already scaled back U.S. offshore wind ambitions amid rising uncertainty.
Energy experts warn the implications go far beyond one project. Analysts believe the political shift could derail more than 60 gigawatts of future capacity, threatening grid reliability and climate goals as the country faces growing energy demands from AI, manufacturing, and population growth.
“Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment,” said Jason Grumet, CEO of the American Clean Power Association.
New York Governor Kathy Hochul has strongly opposed the federal intervention, calling it an overreach and vowing to uphold the state’s target of sourcing 70% of electricity from renewables by 2030.
For investors, energy executives, and policymakers, the halt signals a new era of volatility in U.S. clean energy infrastructure—where political decisions increasingly shape the future of climate commitments and energy security.
