(Reuters) -U.S. Interior Secretary Doug Burgum ordered a halt to construction of Equinor’s Empire Wind project off the coast of New York, saying information suggested the Biden administration approved it without enough environmental analysis.

In a post on X on Wednesday, Burgum said the information would be reviewed further but did not elaborate on the faults identified.

The sudden order marks a major blow to Norway’s Equinor and the nascent U.S. offshore wind industry, which enjoyed substantial support as a part of former President Joe Biden’s plan to decarbonize the power grid and combat climate change.

An Equinor spokesperson said the company had received the stop-work order from the U.S. Bureau of Ocean Energy Management (BOEM), the Interior arm that permits offshore energy projects.

"We will engage directly with BOEM and the Department of Interior to understand the questions raised about the permits we have received from authorities," Equinor said. "We will not comment about the potential consequences until we know more."

Burgum said he had consulted with Commerce Secretary Howard Lutnick on the decision. Commerce houses the National Marine Fisheries Service, which is involved in permitting offshore wind facilities.

The Interior Department decision stems from a review of offshore wind permitting and leasing that President Donald Trump ordered on his first day back in the Oval Office in January. Interior officials did not respond to a request for additional comment.

Since the January order, the offshore wind industry has sought to position itself as being aligned with Trump’s domestic energy agenda. Trade groups reacted with disappointment following Burgum’s announcement.

"Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda," Jason Grumet, CEO of the American Clean Power Association, said in a statement.

"With skyrocketing energy demand and increasing consumer prices, we need streamlined permitting for all domestic energy resources. Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment," Grumet added.

Empire Wind was approved by the Biden administration in November 2023 and began construction last year.

The lease area, which will house two projects, is located 12 nautical miles (22 km) south of Long Island, New York. The facilities together are expected to generate enough electricity to power 700,000 homes a year.

The project was expected to start producing power in 2027. It is a key part of New York state’s efforts to reduce the use of fossil fuels and combat climate change.

New York Governor Kathy Hochul said the project was already contributing to the state’s economy and creating hundreds of jobs.

"This fully federally permitted project has already put shovels in the ground before the President’s executive orders - it’s exactly the type of bipartisan energy solution we should be working on," Hochul said in a statement.

"As Governor, I will not allow this federal overreach to stand. I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future."

Burgum’s questions about the permitting of Equinor’s project come even as the Trump administration has moved to speed up environmental reviews and fast-track approvals for other projects under a declaration of a national energy emergency.