Seatrium suffers NY offshore wind substation cancellation blow

The cancellation follows a decision by project developers Equinor and BP to scrap their offshore wind renewable energy certificate (Orec) deal with New York state amid cost pressures.

Construction work on the Empire Wind 2 OSS platform was expected to start in June 2024. Minimal engineering work has been performed to date.

“Seatrium will avail construction capacity set aside for this project to other projects in the pipeline,” the firm said, adding that payment for the work performed to date has been received.

The contract cancellation is “not expected to have material financial impact” on Seatrium’s earnings per share and net tangible asset per share in the current financial year, the company said.

Seatrium’s contract for the 816MW Empire Wind 1 project remains unaffected and continues as planned, it noted. Construction work on the OSS platform for that project started in the last quarter of 2023.