Equinor Sues U.S. Over $5 Billion Wind Farm Suspension

World

In a major escalation of the legal battle over America’s energy future, Norwegian energy giant Equinor (NYSE: EQNR) filed a civil lawsuit on Friday, January 2, 2026, against the U.S. Department of the Interior. The suit, filed in the U.S. District Court for the District of Columbia, challenges the Trump administration’s recent order to suspend the $5 billion Empire Wind project off the coast of New York.

Equinor is seeking a preliminary injunction to allow construction to resume immediately, arguing that the halt is “unlawful” and threatens the viability of a project that is already more than 60% complete.


The Collision: National Security vs. Energy Transition

The suspension, issued just before Christmas on December 22, 2025, affected five major offshore wind farms along the East Coast. The administration cited “emerging national security risks,” specifically alleging that massive turbine blades create “radar clutter” that could obscure adversary technologies.

  • Equinor’s Defense: The company maintains it has coordinated with federal officials—including the Department of War (formerly the Department of Defense) and the U.S. Coast Guard—since 2017 to mitigate security risks.
  • The “Arbitrary” Argument: Legal filings describe the suspension as an “arbitrary and capricious” reversal of previous federal approvals, noting that the project has already met all national security requirements identified during its nine-year regulatory review.
  • Economic Impact: Equinor has already invested over $4 billion in the project, with nearly 4,000 workers employed during the current construction phase.

Industry-Wide Legal Rebellion

Equinor is not alone in its pursuit of legal recourse. The offshore wind industry is currently mounting a coordinated defense against what it calls a “policy assault” on renewable energy.

DeveloperProjectStatus / ImpactLegal Action
EquinorEmpire Wind 160% Complete; 810 MWFiled for Preliminary Injunction (Jan 2).
ØrstedRevolution Wind87% Complete; 704 MWFiled suit; claims losses of $1.4M/day.
Dominion EnergyCoastal Virginia Wind70% Complete; 2.6 GWInitial injunction denied; exploring options.
Avangrid/CIPVineyard Wind 1Partially GeneratingEvaluating legal steps; still generating limited power.

The Stakes for New York and the Grid

Empire Wind 1 is a cornerstone of New York’s clean energy strategy, contracted with NYSERDA to power approximately 500,000 homes. Beyond power generation, the project is funding the $861 million revitalization of the South Brooklyn Marine Terminal, intended to serve as a primary hub for the U.S. offshore wind supply chain.

Industry analysts warn that if the suspension remains in effect, it could trigger “enterprise-level threats” to these companies, potentially leading to lease terminations and the loss of billions in private investment. The Department of the Interior has stated it will review the projects over a 90-day period, though it reserves the right to extend the pause indefinitely.

What Happens Next?

The U.S. District Court is expected to hear arguments for the preliminary injunction within the coming weeks. For Equinor and its peers, the ruling will be a “make-or-break” moment; a win would allow work to continue through the 2026 construction season, while a loss could result in further massive impairments—similar to the $955 million write-down Equinor took following a shorter work stoppage in early 2025.


U.S. District Court for the District of Columbia Picture by AgnosticPreachersKid

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