Ørsted: US projects Ocean Wind 1 and 2 will not be built

Ørsted has made the decision to stop the development of the two US offshore wind farms Ocean Wind 1 and 2. This is a result of further delays with suppliers, which would further affect the project schedule and lead to another significant project delay, the Danish project developer announced. This decision will have a negative impact on the fourth quarter results.

Commenting on the developments, Mads Nipper, Group President and CEO of Ørsted, said with regret: "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."

On the other hand, there is positive news for another planned offshore project in the US: the 704 MW Revolution Wind project will be built. Ørsted has made the final investment decision (FID) for the wind farm, which will be built in a 50:50 partnership with Eversource.

Construction of the required onshore parts has already begun, and construction of the offshore turbines will start in 2024, so the project is expected to be completed in 2025.