(Adds New York state statement, background on U.S. offshore
wind development)
OSLO, Jan 13 (Reuters) - Norwegian energy major Equinor
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 Wednesday.
The agreement 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.
As part of the deal, Equinor will invest an undisclosed sum
to help upgrade two ports, the Port of Albany and South Brooklyn
Marine Terminal, to support the expected boom in the nascent
U.S. industry.
The United States lags Europe in development of offshore
wind energy, with just one small wind farm off Rhode Island.
Permits for the first major project, Vineyard Wind, has suffered
a string of setbacks, but several Northeastern states have set
targets to procure large amounts of offshore wind over the next
15 years.
Equinor's two projects, Empire Wind 2 and Beacon Wind 1,
will provide 2,490 megawatts of power to New York state under
the contract announced on Wednesday, enough to power about 1.3
million homes.
New York has a goal of sourcing 9,000 megawatts of offshore
wind by 2035 as part of Cuomo's plan to address climate change.
Equinor has a prior commitment to provide 816 MW of power to
New York from another offshore wind project, Empire Wind 1.
In September, Equinor said BP would be a 50% partner
in the two projects. That deal is expected to close early this
year.
In a statement, Equinor Chief Executive Anders Opedal called
the successful bids "a game-changer for our offshore wind
business in the U.S."
European oil firms such as Equinor and BP are under pressure
from activists, banks, investors and some governments to shift
away from fossil fuels, and analysts say offshore wind farms are
probably the quickest way for them to do so.
(Reporting by Terje Solsvik in Oslo and Nichola Groom in Los
Angeles; editing by Nerijus Adomaitis and Grant McCool)