Empire Wind 2 rock installation contract terminated

GLDD's Eleni Beyko: “We continue to pursue additional opportunities. including projects internationally for 2026 and beyond.”

Equinor and BP’s decision to “reset” the Empire Wind 2 offshore wind project (see earlier story) has led to another contract termination. As we noted in our report, the so-called “reset” decision was soon followed by termination of Seatrium’s contract for the Empire Wind 2 offshore substation (OSS) platforms. Now the rock installation contract has been scrubbed.

Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) said last week that it had been informed of the termination of the Empire Wind 2 contract, which it had been awarded in consortium with Van Oord.

“In 2022, the consortium, was contracted by Empire Wind to perform rock installation for the Empire Wind 1 and 2 projects with installation windows in 2025 and 2026, respectively,” says GLDD. “The Article VII for Empire Wind 1 was approved by the New York State Public Service Commission in December of 2023. Empire Wind 1 is currently on track for rock installation in 2025. However, Empire Wind has informed the consortium that they have terminated the Empire Wind 2 rock installation contract that was set to commence in 2026.

“Termination of the Empire Wind 2 project initiates a contractually obligated termination fee payable to the consortium that is intended to cover lost earnings potential related to Empire Wind 2.”

Eleni Beyko, senior vice president-offshore wind at Great Lakes, commented, “New York remains committed to meeting the state’s clean energy goals and they have taken steps forward with the accelerated solicitations for new PPAs [power purchase agreements] to allow developers to adjust prices for inflation and develop more robust projects going forward. Awards for the next solicitation round are expected in February 2024. We look forward to the start of the Empire Wind 1 installation expected in 2025, continuing our relationship with Equinor and BP as a preferred supplier, and bidding on future projects. We continue to pursue additional opportunities, including projects internationally, for 2026 and beyond.”