Another offshore wind project is canceled, citing inflation, interest rates, and supply chains

The developers of an enormous wind project off the coast of New York announced the project has been canceled.

Equinor and BP said in a statement that they had reached an agreement with the New York State Energy Research and Development Authority to terminate the 1,260 megawatt Empire Wind 2 project.

The companies said the agreement reflects “changed economic circumstances on an industry-wide scale” which includes “inflation, interest rates and supply chain disruptions.”

“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” said Molly Morris, president of Equinor Renewables Americas.

Two months ago, Danish wind developer Orsted canceled the two-phase Ocean Wind project off the coast of New Jersey, citing the same economic problems as those that led Equinor and BP to cancel Empire Wind 2.