Denmark’s Orsted, which is a world leader in the development of offshore wind farm projects, has announced the abandonment of two US projects. The energy crisis has made this area of green energy, which the US and Europe are relying on, unprofitable.
“Orsted has decided to stop the Ocean Wind 1 and 2 projects. The decision is a consequence of additional delays from suppliers, which further impacts the project schedule and leads to further significant delays. In addition, Orsted has revised its view of the situation, including the monetization of tax incentives, as well as the timing and likelihood of obtaining final construction permits. Finally, rising long-term interest rates in the US have further weakened the business case,” the Danish company said in a statement.
Her head Mads Nipper I noticed that I was extremely disappointed with the situation.
Reporter Bloomberg Stephen Stapzynski writes in X that other offshore wind project developers who already have operating plants are trying to change the terms of their deals with customers.
The message from the world leader in offshore wind energy and the write-off of $4 billion in assets did not pass without a trace for him. Over the past week, the company’s shares fell in price by 30% – to a minimum in five years. At its peak in 2021, Orsted’s capitalization was about $100 billion, and now it is less than $25 billion, noted Bloomberg columnist Xavier Blas.
The head of Orsted gave an interview to the agency in which he stated that electricity prices should rise and this is completely inevitable.
As reported EADaily , the energy crisis has led not only to a rise in energy prices. Equipment for wind power plants has also skyrocketed in price. As a result, the cost of green electricity is skyrocketing.
For example, US utilities are beginning to withdraw from contracts with wind power producers. Thus, Orsted previously lost a tender to supply electricity to the state of Rhode Island. The state utility found the wind farm developer’s proposal too expensive. Meanwhile, in the UK, Orsted is struggling to make ends meet with the Hornsea 3 project.
2023-11-02 10:53:00
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