Empire Wind 1 Financial Close: Procurement Lessons from an 810 MW Offshore Project

Empire Wind 1 Reaches Financial Close: What It Means for Suppliers

On 2 January 2025, Equinor announced that Empire Wind 1, an 810 MW offshore wind project offshore New York, had secured a project-financing package of more than USD 3 billion, with financial close reached at the end of December 2024. The project is expected to reach commercial operation in 2027, with total capital investments estimated at approximately USD 5 billion, including the effect of expected future tax credits (ITCs).

For EPC engineers, procurement managers, and industrial buyers, this milestone is not just a headline—it signals a concrete pipeline of procurement activity. Offshore wind projects require extensive piping systems for cooling water, fire protection, hydraulic systems, and balance-of-plant infrastructure. Flanges, forged fittings, and pipe supports are among the critical components that will be specified, sourced, and inspected.

However, as with any large energy project, the procurement process is fraught with risks. This article outlines what buyers should verify before engaging with suppliers, based on the verified facts of the Empire Wind 1 project.

Project Overview: Key Verified Facts

• Financing: Project-financing package of over USD 3 billion; financial close at end of December 2024.
• Capacity: Contracted capacity of 810 MW.
• Expected COD: 2027 (per the January 2025 release).
• Offtake: 25-year Purchase and Sale Agreement with NYSERDA at a strike price of USD 155.00/MWh (announced June 2024).
• Location: 15-30 miles southeast of Long Island, spanning 80,000 acres.
• Grid Connection: First offshore wind project to connect into the New York City grid.
• Port Infrastructure: Redevelopment of South Brooklyn Marine Terminal (SBMT) as staging, assembly, and O&M hub.

These facts are time-sensitive. Construction status and commercial operation timing may have changed since the release. Buyers should always recheck the latest official project updates before making procurement decisions.

Procurement Implications for Piping Components

Offshore wind projects like Empire Wind 1 require a wide range of piping components. While the exact quantities and specifications are not publicly disclosed, typical applications include:

• Flanges for connecting pipe sections in cooling water systems, fire mains, and hydraulic lines.
• Forged fittings (elbows, tees, reducers) for directional changes and size transitions.
• Pipe supports and hangers to manage thermal expansion, vibration, and weight loads.

For suppliers, this project represents a potential demand for high-quality, code-compliant components. For buyers, it underscores the need for rigorous supplier qualification and inspection.

What Buyers Must Verify Before Quoting

Given the scale and regulatory scrutiny of offshore wind projects, buyers must not rely on assumptions. Here is a checklist of what to verify with any supplier:

1. Material certifications: Ensure that all flanges and fittings meet applicable ASTM/ASME standards (e.g., ASTM A105 for carbon steel flanges, ASTM A182 for alloy/stainless). Request EN 10204 3.1 or 3.2 mill test certificates.
2. Traceability: Confirm that materials are traceable from melt to final product. This is critical for offshore applications where failure is not an option.
3. Coating and corrosion protection: Offshore environments demand robust corrosion protection. Verify that coatings meet project specifications (e.g., NORSOK M-501 or equivalent).
4. NDT requirements: Non-destructive testing (e.g., ultrasonic, radiography, or dye penetrant) may be required for critical service. Confirm the supplier's NDT capabilities and procedures.
5. Lead times: Offshore projects often have tight schedules. Verify realistic lead times for custom forgings or non-standard flanges.
6. Quality management system: Suppliers should be ISO 9001 certified, and ideally have experience with offshore or energy projects.

RFQ Inputs: What to Include

When issuing a Request for Quotation (RFQ) for piping components, include the following to avoid ambiguity:

• Exact standards: Specify ASME B16.5, ASME B16.9, or other relevant standards.
• Material grade: e.g., ASTM A105, A350 LF2, or duplex stainless steel for seawater service.
• Pressure class and rating: e.g., Class 150, 300, 600, etc.
• Size and schedule: Nominal pipe size and wall thickness.
• End connections: Flange facing, bevel preparation, etc.
• Testing requirements: Specify NDT methods and acceptance criteria.
• Documentation: Request MTCs, inspection reports, and certificates of compliance.

Inspection and Documentation Points

For critical components, third-party inspection is recommended. Key inspection points include:

• Dimensional checks: Verify flange dimensions per ASME B16.5 or B16.47.
• Visual inspection: Check for surface defects, corrosion, or damage.
• PMI (Positive Material Identification): Confirm alloy composition, especially for stainless or duplex materials.
• Hardness testing: Ensure hardness is within specified limits, particularly for sour service.
• Hydrostatic testing: If required, verify that components can withstand specified pressures.

Documentation should be reviewed carefully: MTCs must be complete, with all required signatures and stamps. For EN 10204 3.2 certificates, ensure that the third-party inspector is accredited.

Common Risks and How to Mitigate Them

• Incomplete documentation: Suppliers may provide incomplete MTCs. Mitigate by requiring full documentation in the RFQ and reviewing before shipment.
• Material substitution: Unscrupulous suppliers may substitute lower-grade materials. Mitigate with PMI testing and traceability audits.
• Delayed delivery: Offshore projects are schedule-sensitive. Mitigate by building buffer time into procurement schedules and selecting suppliers with proven track records.
• Non-compliance with project specifications: Ensure that suppliers understand and comply with all project-specific requirements, including coating, NDT, and marking.

Conclusion

Empire Wind 1's financial close is a positive signal for the offshore wind supply chain. For buyers of flanges, fittings, and pipe supports, it underscores the importance of rigorous procurement practices. By verifying supplier capabilities, specifying requirements clearly, and conducting thorough inspections, buyers can mitigate risks and ensure the success of their projects.

For more information on high-quality flanges and forged fittings, visit our forged flanges and nonstandard forgings page. For pipe supports and hangers, see our pipe supports and hangers page.

Sources

• Equinor news release: Securing financial close for Empire Wind 1
• Equinor news release: Equinor solidifies New York offtake contract for Empire Wind 1