Ørsted cancels two US offshore wind projects

has decided to cancel the development of two US offshore wind projects, Ocean Wind 1 and Ocean Wind 2, incurring an impairment cost of £3.3 billion

Ørsted, a major player in the energy industry, has announced the cancellation of two prominent offshore wind projects in the US, Ocean Wind 1 and Ocean Wind 2.

This decision comes with substantial financial implications, amounting to a cost of £3.3 billion.

The company’s Board of Directors has given its approval to the interim report for the first nine months of 2023.

Within this report, Ørsted cited challenges related to supply chain delays, rising interest rates and the absence of an OREC (Offshore Renewable Energy Certificate) adjustment for the Sunrise Wind project as contributing factors to their decision.

Of the total impairment losses recorded, which amounted to DKK 28.4 billion (£3.3bn), a substantial portion – DKK 19.9 billion (£2.3bn) – is attributed to the Ocean Wind 1 project.

The company said these losses have had a significant impact on the company’s net profit.

Make sure you check out the latest Net Hero Podcast episode:

Latest Podcast