Denmark-based offshore wind firm, Orsted, has announced the cancellation of its Ocean Wind 1 and 2 projects off the coast of New Jersey, dealing a blow to the Biden administration’s offshore wind goals.
The decision is attributed to changing macroeconomic factors, including high inflation, rising interest rates, and supply chain bottlenecks.
Orsted’s financial struggles became evident in August when it marked down the expected value of some projects by over $2 billion.
— Daily Caller (@DailyCaller) August 30, 2023
David Hardy, group executive vice president and CEO of Americas at Orsted said, “Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments.”
Adding, “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2.”
We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a U.S. and global hub for offshore wind energy.” concluded the executive.
The offshore wind industry as a whole has faced challenges, leading some experts to suggest the need for a bailout.
These cancellations impact the Biden administration’s target of generating enough offshore wind energy to power 10 million American homes by 2030.
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