By WAYNE PARRY, Associated Press
Ørsted, the global wind energy developer, says its first offshore wind farm in New Jersey will be delayed until 2026 due to supply chain issues, higher interest rates and a failure so far to garner enough tax credits from the federal government.
The Danish company revealed the delay during an earnings conference call Wednesday, during which it said it could be forced to write off about $2.3 billion on U.S. projects that are worth less than they had been.
It also said it had considered simply abandoning the Ocean Wind I project off the southern New Jersey coast.
But Ørsted still believes the wind farm, to be built in waters off Atlantic City and Ocean City, will be profitable in the long run.
“As it stands today, we believe the best direction is to continue to invest in these projects,” said David Hardy, an executive vice president and CEO of the company’s North American operations. “It still is the better choice than walking away today.”
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Energy giant’s stock sags after it pushes back deadline for NJ offshore wind (NJ Spotlight)
The company did not say when in 2026 its Ocean Wind I project will be fully operational, and a spokesperson could not say Thursday what the new timetable is. Previously, Ørsted had said power would be flowing to customers sometime in 2025.
Ørsted has federal approval for the Ocean Wind I project, and has state approval for a second New Jersey project, Ocean Wind II.
However, during Wednesday’s call, the company said it is “reconfiguring” Ocean Wind II and its Skipjack Wind project off the coasts of Maryland and Delaware because they do not currently meet its projected financial standards. It did not give details of what that reconfiguration might entail.
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