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.

But the main appeal of offshore wind for supporters, including environmentalists, many state governments and the Biden administration is precisely that it is not a fossil fuel business. The“The urgency to transition to clean, renewable energy is an irreversible reality,” read a statement signed Wednesday by nearly 40 environmental, labor and community groups from New Jersey who support offshore wind, including the state’s chapter of the Sierra Club.

The industry also faces stiff political headwinds, in New Jersey and nationally, most of it from Republicans, who have convinced the U.S.

 

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