Equinor ASA clinched a contract to supply offshore wind energy to New York state from two projects it is developing off Long Island, state and company officials said on Jan. 13.

The agreement with Norway-based Equinor represented the largest single procurement of renewable energy by a U.S. state so far, according to a statement from New York Governor Andrew Cuomo’s office. Further, the deal, which includes upgrades to two New York ports, is set to position the Empire State as an offshore wind industry hub.

Equinor, well known as an oil and gas firm, is working to transform itself into a broad energy company largely in response to growing pressure from activists, banks, investors and some governments to shift away from fossil fuels.

As part of this transformation, the company has built a material position in renewable energy with offshore wind projects in the U.K. and Germany. In the U.S., Equinor also holds two lease areas, the Empire Wind and Beacon Wind lease areas, both of which are located off Long Island.

In September 2020, BP Plc, a London-based oil major also facing calls to shift away from fossil fuels, agreed to pay $1.1 billion to acquire interests in the Empire Wind and Beacon Wind leases from Equinor. The transaction, expected to close early 2021, not only marked BP’s entry into offshore wind but also included a partnership with Equinor to jointly develop offshore wind projects—existing and future—in the U.S.

Map of Equinor Offshore Wind Operations in the U.S.
Map of Equinor Offshore Wind Operations in the U.S. (Source: Equinor ASA)

Under the award announced on Jan. 13, Equinor and BP will provide generation capacity of 1,260 megawatts (MW) renewable offshore wind power from Empire Wind 2, and another 1,230 MW of power from Beacon Wind 1 to New York with renewable power.

The agreement adds to existing commitments to provide 816 MW of power to New York from another offshore wind project, Empire Wind 1. New York has a goal of sourcing 9,000 MW of offshore wind by 2035 as part of Cuomo’s plan to address climate change.

In a statement, Equinor CEO Anders Opedal called the successful bids “a game-changer for our offshore wind business in the U.S. and underline Equinor’s commitment to be a leading company in the energy transition.”

As part of the deal, Equinor will invest an undisclosed sum to help upgrade two New York ports, the Port of Albany and South Brooklyn Marine Terminal. The goal is to transform the ports into large-scale offshore wind working industrial facilities that position New York to become an offshore wind industry hub.

BP’s acquisition of the Empire Wind and Beacon interests has an effective date of Jan. 1, 2020. Equinor is set to remain operator of the projects in the development, construction and operations phases.

Reuters contributed to this article.

Offshore