The US District Court for the District of Columbia has issued a preliminary injunction permitting Equinor to immediately resume construction activities on its flagship Empire Wind project off the coast of New York. The ruling, delivered in mid-January 2026, overturns a controversial “stop work” order issued by the US Department of the Interior (DOI) on December 22, 2025, which had paralyzed development on five major offshore wind farms along the East Coast. This legal victory comes just days after Equinor filed a civil suit warning that the project was on the brink of cancellation due to mounting financial losses. The court’s decision allows Equinor to mobilize its workforce and safeguard a $4 billion investment that is critical to New York State’s renewable energy goals.

A Project on the Brink

The injunction effectively rescues Empire Wind from what Equinor described as an imminent financial collapse. In its filing, the Norwegian energy giant revealed that the project was “days away” from total termination, a scenario that would have triggered $850 million in contract cancellation fees and required another $355 million to dismantle existing infrastructure. With over $2.7 billion already drawn from project financing and the facility sitting at 60% completion, the stakes were astronomically high. The DOI’s initial suspension had halted work not just on Empire Wind, but also on other major developments like Vineyard Wind 1 and Sunrise Wind, creating an industry-wide crisis.

Empire Wind Project: Factsheet

Developer: Equinor (Empire Offshore Wind LLC)

Location: Offshore Long Island, New York

Project Status: Under Construction (Restarting Jan 2026)

Completion Level: >60%

Total Investment: >$4 Billion

Power Capacity: Sufficient for ~500,000 homes

Key Infrastructure: Includes South Brooklyn Marine Terminal

Legal Context:

Suspension: Dec 22, 2025 (DOI Stop Work Order).

Restart: Jan 16, 2026 (Preliminary Injunction granted).

Financial Risk Averted:

$4B in sunk costs.

$850M in potential contract termination fees.

Restarting the Engine

With the legal barrier removed, Equinor is now pivoting to restart complex marine and onshore construction operations. The immediate focus is on safely remobilizing vessels and crews to the site off Long Island and the South Brooklyn Marine Terminal, which is being transformed into a key staging hub. “The project will continue to engage with the US government to ensure the safe, secure, and responsible execution of its operations,” Equinor stated following the ruling—a cooperative tone that contrasts with the escalating conflict where Ørsted is suing the US again in a $500M legal battle over offshore wind suspensions. This restart is pivotal for the New York grid; once fully operational, Empire Wind is contracted to deliver enough clean electricity to power approximately 500,000 homes, providing a reliable energy source during a period of rapidly growing demand.

Broader Industry Implications

This ruling may signal a turning point for other stalled projects. The DOI’s blanket suspension affected a combined $10 billion in investments capable of powering over two million homes. Empire Wind is the second project, following Revolution Wind, to receive permission to restart. Industry analysts view this as a crucial stabilization of the US offshore wind market, which has been battered by regulatory uncertainty and supply chain costs. However, the legal battle highlights the fragility of the sector’s regulatory framework and the immense financial risks developers face when federal policy shifts unexpectedly.