The Trump administration has lifted a construction halt on a significant offshore wind project near New York, providing much-needed relief to a struggling industry.

Equinor, the Norwegian state-supported oil and gas company, announced it will resume work on the Empire Wind project after last month’s “stop work order” was rescinded.

Anders Opedal, Equinor’s president, expressed gratitude toward President Trump for “finding a solution that preserves thousands of American jobs and supports ongoing investments in U.S. energy infrastructure.”

This decision resulted in a roughly 2 percent increase in Equinor’s stock, while shares of Ørsted, the Danish offshore wind leader currently developing two projects in the U.S., surged by 17 percent as the reversal reassured investors about their operations.

The Empire Wind project, located approximately 15 miles south of Long Island at its closest point, commenced construction last year and is projected to begin commercial operations in 2027.

Once completed, the wind farm will feature 54 turbines, each standing 95 feet tall, capable of generating up to 810 megawatts of electricity, enough to power around 500,000 homes in New York.

A controversial directive from U.S. Interior Secretary Doug Burgum last month momentarily stunned the industry when he instructed the Bureau of Ocean Energy Management (BOEM) to halt construction despite the project having all necessary permits. He criticized the Biden administration for allegedly rushing through the approval process without adequate analysis.

The decision to reverse the stop order appears to have been influenced by negotiations with New York Governor Kathy Hochul, which might lead to the revival of a 2020 plan to stop a new gas pipeline on environmental grounds.

Governor Hochul stated that the Empire Wind project is set to create thousands of jobs and emphasized her efforts over weeks to pressure the federal government to withdraw the stop work order, allowing workers to return and advancing this vital renewable energy initiative.

“After numerous discussions with both Equinor and White House officials, reinforcing the project’s importance, I am pleased that President Trump and Secretary Burgum have agreed to lift the halt and facilitate the project’s advancement,” she commented.

Hochul also reiterated her commitment to collaborating with the administration and private sector on new energy projects that comply with New York’s legal standards, aiming to enhance reliability and cost-effectiveness for consumers.

Secretary Burgum conveyed on social media that he is “encouraged by Governor Hochul’s willingness to progress on essential pipeline capacity.”

Equinor is one of several major energy firms that have faced heavy financial setbacks due to rising expenses and regulatory challenges in the evolving U.S. offshore wind market.

On his first day back in office, Trump had mandated a pause on new offshore wind leasing and permitting until a process review could be conducted, citing potential legal issues that could endanger navigational safety, transportation, national security, and marine life.

Analysts at Jefferies noted that the stop work order for Empire Wind had significantly heightened concerns about permitting and cancellation risks related to Ørsted’s ongoing construction projects, contributing to a 40 percent decline in Ørsted’s market value since the last U.S. elections. The recent decision to reverse the halt has thus had favorable implications for Ørsted’s outlook.