NEW YORK CITY, New York: Norwegian energy company Equinor is on the brink of terminating its US$2.5 billion Empire Wind project in New York, citing delays imposed by the Trump administration, the company said late last week.

Work on the offshore wind project has been halted since April 16 following an order from Interior Secretary Doug Burgum to pause construction pending further review. Burgum stated the approval process appeared rushed by the previous Biden administration.

Equinor, which had been working on Empire Wind since 2017 and had already completed a third of the project, said the delay is financially unsustainable. "This is an urgent, unsustainable situation," said Molly Morris, president of Equinor Renewables Americas. "If no material progress is made toward a resolution within days, Equinor will be forced to terminate the project."

The company has invested over US$2.5 billion so far and is spending up to $50 million per week to keep 11 vessels on standby as the summer construction window opens. The offshore wind project, intended to power more than 500,000 New York homes by 2026, could be pushed back by a year if construction does not resume soon, Morris warned.

The Bureau of Ocean Energy Management (BOEM) approved the construction and operations plan in February 2024, and construction began that same year. However, the Trump administration halted the project, citing the need for further review.

President Donald Trump has been a vocal critic of renewable energy, particularly offshore wind, and his administration has issued several executive orders aimed at boosting fossil fuel projects. On his first day in office, Trump signed an order suspending offshore wind lease sales and pausing permits for all wind projects.

Equinor executives, including CEO Anders Opedal, met with National Economic Council Director Kevin Hassett on Wednesday to discuss the situation but have yet to secure a meeting with Burgum.

The Trump administration's stance has already prompted German energy firm RWE to suspend its offshore wind projects in the U.S.. At the same time, French company TotalEnergies has paused its New York wind development.

New York, joined by a coalition of state attorneys general, is challenging Trump's executive order in court, arguing that he lacks the authority to unilaterally halt the permitting process for wind projects.

Meanwhile, the White House defended the actions, stating that Democratic attorneys general are obstructing the president's agenda to restore "energy dominance" instead of collaborating on national energy policy.

Equinor, which has over $60 billion in U.S. investments, is weighing legal options but prefers a political resolution. "This is about honoring contracts and financial investments made in the U.S. It could set a dangerous precedent by stopping a project in mid-execution," Morris said.