EQNR Resumes Empire Wind Work After Court Grants Preliminary Injunction

Equinor ASA EQNR announced that it will resume construction activities for the Empire Wind project offshore New York after being granted a preliminary injunction by a U.S. District Court. The U.S. District Court judge noted that any further delays to this offshore wind project may have irreversible consequences and could result in material financial damages to the project. As a result, Empire Wind will now restart construction work, while the lawsuit filed against the U.S. Department of the Interior continues to proceed.

Equinor’s Empire Wind project is currently being developed under an agreement with the New York State Energy Research and Development Authority to meet the fast-growing energy demand in the United States. Empire Wind is intended to become a new source of electricity for New York in the near term and enhance grid reliability amid rising energy demand. EQNR has stated that the offshore wind project is expected to deliver enough power for nearly 500,000 homes in New York.

Equinor had reportedly said that if the project faced any disruptions or delays beyond Jan. 16, 2026, it would significantly impact project economics. The Trump administration has repeatedly disrupted the construction of several large-scale offshore wind projects on the U.S. East Coast, severely affecting offshore wind developers. Notably, EQNR has mentioned that Empire Wind is operating on a narrow construction timeline. These delays could lead to cost overruns and trigger loan defaults, highlighting that the losses could reach up to $5.3 billion.

The Empire Wind project is at a critical stage of execution, with more than 60% of it already complete. At this stage, any disruption or delays could potentially jeopardize the large-scale project and cause material financial damage to the company.

EQNR’s Zacks Rank and Key Picks

EQNR currently has a Zacks Rank #5 (Strong Sell).

Some top-ranked stocks from the energy sector are Subsea7 S.A. SUBCY, Oceaneering International OII and FuelCell Energy FCEL. While Subsea7 currently sports a Zacks Rank #1 (Strong Buy), Oceaneering and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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This article originally published on Zacks Investment Research (zacks.com).

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