The developers of an offshore wind project in Long Beach are terminating their agreement with the state.

Equinor and BP are scrapping their contract for the Empire Two Wind project to "reset." They say rising costs of materials and inflation are to blame.

Green energy advocates say it is a setback, but not surprising.

"Really what's happening here is pretty much what we expected," says Adrienne Esposito, of Citizens Campaign for the Environment. "Because of inflation costs, because of their challenges in routing the cable route through Long Beach, they've decided to withdraw it, regroup and will probably submit later this year."

A spokesperson for Equinor tells News 12 that the company is carefully reconsidering the state's request for a proposal.