Do you have an extra $5.55 billion to spare? Neither does Orsted.
If you live in the greater Philadelphia area, you are probably aware of the controversy surrounding Danish energy company Orsted’s Ocean Wind 1 and 2, their two-stage offshore wind project off the Jersey shore.
Mads Nipper, Orsted’s CEO, cited several reasons for the project cancellation, from supply chain problems to interest rates. Ocean Wind’s cancellation is one of the causes of the company’s projected $4 billion write-down to start 2024, with some estimates anticipating the impairment will be closer to $5.55 billion.
Ocean Wind 1 and 2 have faced lawsuits challenging the projects and concerns over environmental effects. New Jersey governor Phil Murphy’s green initiatives have also been challenged by Republican counties, including one from Cape May County that is continuing with their lawsuit against offshore permits from the state.
Offshore wind farm projects have been controversial as of late as many states are pushing to reduce their carbon footprints. Protestors are fighting the initiatives, citing reasons for the environmental impact on the oceans and ocean life, as well as those against clean energy projects overall.
Ocean Wind 1 and 2 would have provided power for over 500,000 homes.
Check back soon for our pro/con post about wind farm projects!
The Press of Atlantic City