{"id":152361,"date":"2026-08-25T16:12:44","date_gmt":"2026-08-25T16:12:44","guid":{"rendered":"https:\/\/www.europesays.com\/dk\/152361\/"},"modified":"2026-08-25T16:12:44","modified_gmt":"2026-08-25T16:12:44","slug":"orsted-cancels-two-offshore-wind-projects-along-new-jersey-coast","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/dk\/152361\/","title":{"rendered":"\u00d8rsted cancels two offshore wind projects along New Jersey coast"},"content":{"rendered":"

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Danish energy company \u00d8rsted announced Tuesday that it is abandoning<\/a> two of the eight offshore wind projects it has in development in the U.S., citing project delays, permitting timelines, and increased interest rates.<\/p>\n

The company will \u201ccease development\u201d on Ocean Wind 1 and 2, but said it will be moving ahead with the 700-MW Revolution Wind farm offshore Rhode Island and Connecticut along with partner Eversource.<\/p>\n

Ocean Wind 1 and 2 were \u00d8rsted\u2019s largest projects in development, with a planned capacity of 1,100 MW and 1,148 MW, respectively.\u00a0<\/p>\n

\u201cWe are extremely disappointed to announce that we are ceasing the development of Ocean Wind 1 and 2,\u201d CEO Mads Nipper said in a release.\u00a0<\/p>\n

New Jersey\u2019s Gov. Phil Murphy called the company\u2019s decision \u201coutrageous\u201d<\/a> in a Wednesday release, saying it called into question \u00d8rsted\u2019s credibility and competence, and that he had directed his administration to review the state\u2019s legal pathways for ensuring that \u00d8rsted “fully and immediately honors its obligations.\u201d<\/p>\n

\u00d8rsted is recognizing $4 billion in impairments as a result of the canceled projects and financial struggles with ongoing projects. The cancelation of Ocean Wind 1 alone resulted in an impairment of around $2.8 billion, the company said.<\/p>\n

Offshore wind projects in the U.S. have hit a slew of financial difficulties and other challenges recently, with several developers moving to exit their power purchase agreements<\/a> in the face of rising costs.<\/p>\n

Nipper said that the company remains committed to the U.S. renewables market, and values the efforts made by the federal government to support the offshore wind industry, but that \u201csignificant adverse developments from supply chain challenges, leading to delays in the project schedule, and rising interest rates\u201d led \u00d8rsted to this decision.<\/p>\n

The company has also \u201cupdated its view\u201d on assumptions regarding factors like \u201ctax credit monetization and the timing and likelihood of final construction permits,\u201d the release said.<\/p>\n

\u201cWe will now assess the best way to preserve value while we cease development of the projects,\u201d Nipper said. \u201cAt the same time, with an attractive forward-looking value creation, we progress the Revolution Wind project into the construction phase.\u201d<\/p>\n

Going forward, the company will be taking measures to support its capital structure and long-term commitment to its credit rating, said the release. These measures include cost-saving initiatives as well as capital improvements like supply chain financing and portfolio rationalization.<\/p>\n

\u201cAs part of the ongoing review of its US portfolio, \u00d8rsted will assess the potential implications for its current long-term strategic build-out ambition and financial targets,\u201d the company said.<\/p>\n

The New Jersey Senate\u2019s minority leader Anthony Bucco, R, said that state Republicans had warned for months that \u00d8rsted\u2019s\u00a0developments in New Jersey were \u201cunsustainable and would inevitably fail,\u201d calling the projects \u201ctoo much, too fast, and too costly.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback.…\n","protected":false},"author":2,"featured_media":152362,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[285],"tags":[287],"class_list":["post-152361","post","type-post","status-publish","format-standard","has-post-thumbnail","category-orsted","tag-orsted"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/117157032734209148","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/152361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=152361"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/152361\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/152362"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=152361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=152361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=152361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}