08-10 October 2024

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Ørsted ceases development on Ocean Wind projects

Danish offshore wind energy developer Ørsted has completed a review of its US offshore portfolio. It will cease development of the Ocean Wind 1 and 2 projects, and it has taken final investment decision (FID) on the Revolution Wind project.

Projects on the US East Coast have been plagued by inflationary pressures and higher borrowing costs. Ørsted, which was planning 5 GW of development in the region, announced earlier in the year that it would be forced to walk away from some of its developments unless more government support was forthcoming.

Since the announcement, Ørsted said that these US offshore wind projects have experienced further negative developments from adverse impacts relating to supply chains, increased interest rates, and the lack of an Offshore Renewable Energy Certificate (OREC) adjustment at the Sunrise Wind project.

Mads Nipper, group president and CEO of Ørsted, says: ‘We are extremely disappointed to announce that we are ceasing the development of Ocean Wind 1 and 2. We firmly believe the US needs offshore wind to achieve its carbon emissions reduction ambition, and we remain committed to the US renewables market and truly value the efforts by the US government to support the build-up of the US offshore wind industry.’

A provision related to Ørsted ceasing the development of Ocean Wind 1 will negatively impact Q4 2023 EBITDA.

Author: Molly Cooper, AntwerpXL

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