Wind industry deals with blowback from Orsted scrapping 2 wind power projects in New Jersey

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Wind energy developer Orsted is writing off $4 billion, due largely to the cancellation of two large offshore wind projects in New Jersey whose financial challenges mirror those facing the nascent industry.

It added fresh uncertainty to an industry seen by supporters as a way to help end the burning of planet-warming fossil fuels, but derided by opponents as inherently unworkable without massive financial subsidies.off the coast of southern New Jersey due to problems with supply chains, higher interest rates, and a failure to obtain the amount of tax credits the company wanted.

That statement went straight to the heart about concerns over the financial viability of the offshore wind industry in the northeastern U.S., which is in its infancy but has extensive plans from New England to the Carolinas. Orsted's stock price was down over 26% at midday Wednesday. The company said it hopes to re-use some supplies it has already purchased, such as cable and steel, on other projects.

Rep. Jeff Van Drew, a Republican who represents the area in southern New Jersey where Orsted's wind farms would have been built, exulted in the decision to scrap the projects.

 

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