Following a decision by its Board of Directors, Ørsted announced it will cease development of the Ocean Wind 1 and Ocean Wind 2 projects off the coast of New Jersey.
“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,” said David Hardy, Group EVP and CEO Americas at Ørsted. “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. I want to thank Governor Murphy and NJ state and local leaders who helped support these projects and continue to lead the region in developing American renewable energy and jobs.”
The decision to cease development of Ocean Wind 1 and Ocean Wind 2 is part of an ongoing review of Ørsted’s U.S. offshore wind portfolio with an update planned for its Q4 2023 results announcement. The company remains committed to the U.S. renewable energy industry, including offshore wind and land-based technologies.
Ørsted intends to retain the seabed lease area for Ocean Wind 1 (1.1 GW) and Ocean Wind 2 (1.148 GW) and will consider best options going forward. The company is going forward with Revolution Wind (794 MW) off Connecticut and Rhode Island; South Fork Wind (130 MW) off New York; Sunrise Wind (880 MW) off New York, if approved by the state; and Skipjack Wind off Maryland, if approved by state.
“We remain committed to the U.S. renewable energy market, building clean power that will create jobs across technologies and states from the Northeast to Texas,” Hardy said. “Offshore wind energy remains an integral solution to helping the U.S. meet its clean energy ambitions, including job creation, a domestic supply chain and a reinvigorated maritime industry.”
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