International law firm CMS has advised Equinor, one of the world’s largest offshore wind developers, on its swap transaction with bp in the US, which will see Equinor take full ownership of the Empire Wind lease and projects and bp take full ownership of the Beacon Wind lease and projects.
Under the agreement, Equinor will take 100% ownership of Empire Offshore Wind Holdings LLC and the Empire Wind Projects on a 100% basis. Subject to certain conditions, Equinor will also assume control of bp’s 50% share of the South Brooklyn Marine Terminal (SBMT) lease. bp will take over Beacon Wind Holdings LLC and the associated project company that holds the Astoria Gateway for Renewable Energy site land lease and will become the operator of the Beacon Wind projects.
Empire Wind, which is located 15-30 miles southeast of Long Island, is partnering with New York State to contribute to the State’s 9 GW offshore wind goal by 2035. It is being developed in two projects: Empire Wind 1, with a potential capacity of 810 MW, and Empire Wind 2, with a potential capacity of above 1,200 MW. Equinor, with over two decades of expertise in offshore wind, made its entry into the US offshore wind market in 2017, and has successfully developed a strong offshore wind portfolio in other significant markets including the UK, Poland, Germany, and South Korea.
CMS previously acted for Equinor on the sale of 50% of its non-operated interests in the Empire Wind and Beacon Wind assets to bp in 2020, for a total consideration of USD 1.1 billion.
Charles Currier, Partner and Co-head of the UK Corporate practice at CMS, commented: “We’re pleased to have supported Equinor as it takes full ownership of Empire Wind, a key player in the advancement of New York's climate and energy goals. This transaction, along with our advice in 2020, plays to CMS’s strengths and long track record in supporting clients through complex, multi-jurisdictional matters in the renewables space. We look forward to witnessing the continued success of Empire Wind and Equinor’s journey to becoming a leader in the energy transition.”
The CMS team advising Equinor was led by Charles Currier and Munir Hassan, and included Vitalii Mainarovych, Konrad Rawicz, Honey Kelly-Evans and Kate Merrill (Corporate); Dalia Majumder-Russell and Freddie May (Energy); Joel Vertes, Kaisa Patsalides and Jack Rigelsford (IP); and Neil Baylis and Louisa Mottaz (Competition).
