Trump allows New York offshore wind project after gas compromise

Norwegian energy company Equinor will resume construction on its offshore wind farm in New York, after the Trump administration lifted its order to halt work on the project.

Empire Wind 1 will be the first offshore wind project to deliver electricity directly to New York City. The Interior Department under the Biden administration approved the project last year after Equinor signed a lease issued by the department in 2017.

But Interior Secretary Doug Burgum ordered construction on Empire Wind to stop on April 16, alleging the Biden administration rushed the project's approval “without sufficient analysis or consultation among the relevant agencies as relates to the potential effects.”

The stop-work order had raised fears among investors that the White House might target other wind projects that had already been permitted and approved.

New York Gov. Kathy Hochul said Monday evening that Burgum and President Donald Trump agreed to lift the stop-work order and allow the project to move forward “after countless conversations with Equinor and White House officials.” Empire Wind supports 1,500 union jobs, Hochul said.

Equinor said it aims to execute planned installation activities this year and minimize the impact of the stop-work order in order to reach its goal of starting commercial operations in 2027.

“Americans who live in New York and New England would see significant economic benefits and lower utility costs from increased access to reliable, affordable, clean American natural gas,” the Interior secretary said in a post on social media platform X.

Hochul did not mention natural gas in her statement, though she “reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements” under state law. New York has a history of opposing new natural gas pipelines.

Trump has targeted the wind industry, despite his agenda calling for the U.S. to achieve energy dominance. The president issued an executive order on his first day in office that barred new leases for offshore wind in U.S. waters and ordered a review of leasing and permitting practices.

Trump has a long history of attacking wind turbines, arguing that they kill birds and cost more than they generate in revenue. He posted more than 150 times about wind across Twitter, X and Truth Social since 2012, according to a CNBC review of his posts.

Empire Wind 1 started construction in the spring of 2024 and is more than 30% complete. Equinor has invested $2.5 billion in the project so far. The company is planning to build 54 turbines that are up to 910 feet tall. Empire Wind 1 will generate 810 megawatts of electricity, which is enough to power half a million homes, according to Equinor.

Equinor Chief Financial Officer Torgrim Reitan called the Trump administration's order to stop work unlawful, extraordinary and unprecedented during the company's first-quarter earnings call on April 30.

“We have complied with this order. However, the order did not include any information about the alleged deficiencies in the approval,” Reitan said.

Three other offshore wind projects are under construction in the U.S. all located on the Eastern Seaboard. They are Revolution and Sunrise Wind in New England and Coastal Virginia Offshore Wind.

Dominion Energy is confident Coastal Virginia Offshore Wind will continue to move forward, CEO Robert Blue said on the company's May 1 earnings call. It is 55% complete and will deliver electricity in early 2026, Blue said.

Orsted remains fully committed to Revolution and Sunrise Wind, CEO Rasmus Errboe said on the company's May 7 earnings call. Revolution and Sunrise are about 75% and 35% complete respectively, Errboe said.

CNBC's Gabriel Cortés contributed to this report.