Equinor Offshore Wind Strategy 2025: Navigating Headwinds with Strategic Partnerships

Industry Adoption: How Equinor is Reshaping its Offshore Wind Playbook

Between 2021 and 2024, Equinor pursued an aggressive global expansion in offshore wind, defined by large-scale project awards and ambitious partnerships. The period was marked by significant market entry activities, such as the strategic partnership with bp in the U.S., which secured massive awards in New York for Empire Wind 2 and Beacon Wind 1, totaling nearly 2.5 GW. This era also saw the inauguration of the 88 MW Hywind Tampen, the world’s largest floating wind farm, cementing Equinor’s technological leadership. However, this growth-at-all-costs phase began showing signs of strain by late 2023, when the company booked a $300 million impairment on its U.S. portfolio after regulators rejected pleas for better contract terms to offset inflation. This was a critical inflection point, signaling that the macroeconomic environment was becoming a significant threat to project viability.

Beginning in 2025, Equinor’s strategy underwent a decisive recalibration, shifting from “volume” to “value.” This pivot was immediately evident in a series of strategic retreats and consolidations. The company terminated its U.S. partnership with bp, taking full control of the Empire Wind projects while divesting from Beacon Wind. This was followed by the cancellation of projects in Australia, Spain, and Portugal, and a reduction in its 2030 renewables capacity target from 12-16 GW down to 10-12 GW. Concurrently, Equinor demonstrated a new, more financially disciplined approach. It moved forward with the 1.44 GW Bałtyk 2 & 3 projects in Poland by securing over €6 billion in financing and began exploring a potential asset combination with rival Ørsted. This pattern reveals a clear strategic response to industry-wide headwinds: de-risking development by focusing on core markets with strong financial footing (Poland, Norway), exiting speculative ventures, and using strategic M&A to maintain market exposure without bearing the full weight of capital-intensive development.

Table: Equinor’s Strategic Offshore Wind Investments and Capital Shifts

Table: Evolution of Equinor’s Offshore Wind Partnerships

Geography: Equinor’s Global Offshore Wind Footprint

Between 2021 and 2024, Equinor’s geographic strategy was defined by broad, ambitious expansion. The U.S. East Coast, particularly New York, was the centerpiece of this growth, with multi-gigawatt awards for the Empire and Beacon Wind projects in partnership with bp. Simultaneously, the company pushed into new potential markets, signing letters of intent for up to 14.5 GW in Brazil with Petrobras and forming partnerships to explore opportunities in Germany (EnBW) and the Netherlands (Eneco). This global land grab, which also included early-stage plans for Spain, Portugal, and Vietnam, demonstrated an intent to establish a presence in nearly every major emerging offshore wind region. The UK and Norway remained core strongholds, anchored by the operational Hywind projects and development of Dogger Bank.

From 2025 onwards, this expansive map underwent a sharp consolidation. The company executed a clear strategic retreat from markets deemed financially or politically unviable, withdrawing from two major floating wind projects in Australia (Novocastrian and BOWE) and scrapping plans for Spain and Portugal. This geographic retrenchment has sharpened Equinor’s focus on a few key clusters. The U.S. remains a high-stakes priority, but is now viewed with more caution, concentrated on delivering the 810 MW Empire Wind 1 project amid regulatory and political volatility. In contrast, Europe has emerged as a bastion of stability and execution. Poland became a primary growth engine with the financial close of the 1.44 GW Bałtyk projects, and Norway was reinforced as a hub for floating wind innovation with the 500 MW Utsira Nord win. This geographic shift from a scattered global presence to a concentrated portfolio in the U.S. Northeast, the UK, the Baltic Sea, and Norway reflects the company’s new mandate: prioritize predictable returns and strategic leadership over a widespread but risky footprint.

Technology Maturity: Equinor’s Offshore Wind Technology Trajectory

In the 2021–2024 period, Equinor’s technology strategy focused on demonstrating scale and pioneering next-generation solutions. The official inauguration of the 88 MW Hywind Tampen floating wind farm in 2023 was a landmark achievement, moving floating wind from a pilot concept (Hywind Scotland) to a commercially operating, large-scale asset powering offshore platforms. This was complemented by efforts to industrialize the technology, such as the 2021 unveiling of the ‘Wind Semi’ foundation concept, designed for standardization and mass production. For bottom-fixed technology, the focus was on scaling to massive gigawatt-plus projects like Empire Wind. The establishment of innovation hubs, such as the one with NYU Tandon, was aimed at fostering a long-term pipeline of disruptive technologies, indicating a forward-looking but still developmental approach to the broader ecosystem.

The period from 2025 to the present has seen a distinct shift from pioneering to optimizing. Technology maturity is now being measured by financial viability and efficiency. The renewal of a global contract with Kinewell Energy for its KLOC cost-optimization software highlights a new emphasis on driving down the Levelized Cost of Energy (LCOE) through digital tools. The successful bid for the 500 MW Utsira Nord project in Norway represents the next crucial step for floating wind, moving it from a one-off achievement to a repeatable, commercial development model. Furthermore, Equinor’s portfolio is diversifying with the launch of its first hybrid wind-solar complex in Brazil. This move signals an evolution toward integrated renewable systems that can reduce intermittency and improve grid stability. The focus has matured from simply proving a technology works to proving it can be deployed profitably and efficiently at scale.

Table: Equinor’s Offshore Wind SWOT Analysis

Forward-Looking Insights and Summary

The data from 2025 signals that Equinor has entered a new phase of pragmatic execution, and the year ahead will be defined by discipline, focus, and strategic consolidation. The single most important bellwether for Equinor’s entire offshore wind strategy is the progress of the 810 MW Empire Wind 1 project. Its ability to navigate the volatile U.S. market and reach its 2027 operational target will determine the company’s appetite for future American investments. Any further delays or cost overruns could accelerate a pivot away from the U.S. and toward more stable European ventures.

Meanwhile, the successful execution of the 1.44 GW Bałtyk 2 and 3 projects in Poland is now mission-critical. This development provides a necessary counterweight to U.S. uncertainty and establishes a strong foothold in the growing Baltic Sea market. The most transformative signal, however, is the exploratory talks with Ørsted. A potential asset combination or deeper partnership would represent a monumental step toward industry consolidation, creating a dominant force capable of weathering market storms and dictating terms. Finally, all eyes will be on the development of the 500 MW Utsira Nord floating wind project. This is no longer a technology demonstration but a commercial test. Equinor’s ability to drive down the stubbornly high LCOE of floating wind will validate its long-held technological advantage and unlock vast deep-water resources globally.

In summary, Equinor is navigating the offshore wind sector’s financial storm not by abandoning ship, but by trimming its sails and steering a more deliberate course. The company is trading speculative, widespread growth for focused, profitable execution in core markets, and it is using strategic alliances and M&A as its primary tools for de-risking development. For energy leaders and investors, monitoring these signals—project execution in the U.S. and Poland, M&A activity, and floating wind cost-down—is essential to understanding the future of a global offshore wind leader. To track these commercial shifts and benchmark competitors in real-time, platforms like Enki provide the deep, data-driven analysis needed to identify risks and capitalize on emerging opportunities.

Frequently Asked Questions

What was the main change in Equinor’s offshore wind strategy in 2025?
Beginning in 2025, Equinor’s strategy underwent a significant recalibration, shifting from a “volume” approach focused on aggressive global expansion to a “value” approach. This new strategy prioritizes financial discipline, de-risking development through partnerships and M&A, and focusing on core markets with strong financial footing, such as Poland and Norway.

Why did Equinor end its U.S. partnership with bp?
Equinor and bp ended their U.S. partnership as part of Equinor’s strategic pivot to gain more control and manage risk independently. The split allowed Equinor to take 100% ownership of the Empire Wind projects, which it is now advancing with a more cautious and financially disciplined approach, while divesting from the Beacon Wind project.

Which geographic areas is Equinor focusing on now?
Equinor has consolidated its geographic footprint to focus on a few key strategic clusters. These include the U.S. Northeast (with the Empire Wind 1 project), the UK, the Baltic Sea (where its Bałtyk projects in Poland are a primary growth engine), and Norway (as a core hub for floating wind innovation).

What are the biggest risks to Equinor’s current offshore wind strategy?
The primary risks are significant political and regulatory uncertainty in the U.S., which has already led to a $955 million impairment on the Empire Wind portfolio. Another major challenge is the need to successfully commercialize floating wind technology by driving down its high Levelized Cost of Energy (LCOE), a key test for its Utsira Nord project.

How is Equinor using M&A and partnerships to navigate industry challenges?
Equinor is increasingly using strategic M&A and partnerships as its primary tools for de-risking development. This is exemplified by its billion-dollar investment in rival Ørsted and exploratory talks about an asset combination, which would share capital burdens and could lead to industry consolidation. This marks a shift from using partnerships for market entry to using them for financial stability.