Ørsted will cease development of the Ocean Wind 1 and 2 projects as part of an ongoing review of its US offshore wind portfolio.

Since the announcement, the US offshore wind projects have experienced further negative developments from adverse impacts relating to supply chains and increased interest rates.

Ørsted, part of the winning bid in 2019, took full control of Ocean Wind 1 off the coast of southern New Jersey earlier this year and the New Jersey Board of Public Utilities (BPU) issued an order awarding Ocean Wind 2 a 20-year OREC (Offshore Renewable Energy Certificate) for its offshore wind farm with a capacity of 1.1GW in 2021.

Mads Nipper, group president and CEO of Ørsted, said: “We are extremely disappointed to announce that we are ceasing the development of Ocean Wind 1 and 2. We firmly believe the US needs offshore wind to achieve its carbon emissions reduction ambition, and we remain committed to the US renewables market and truly value the efforts by the US government to support the build-up of the US offshore wind industry. However, the significant adverse developments from supply chain challenges, leading to delays in the project schedule, and rising interest rates have led us to this decision, and we will now assess the best way to preserve value while we cease development of the projects. At the same time, with an attractive forward-looking value creation, we progress the Revolution Wind project into the construction phase.”

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