Cancellation due to rising materials costs and supply chain disruptions
- BP and Equinor cancel major offshore wind project near New York
- Cancellation due to inflation, interest rates, and supply chain disruptions
- Rising materials costs cutting into expected margins on wind power projects
- Similar projects in New Jersey also derailed by inflationary and supply chain pressures
- Setback for America’s clean power goals
- Companies still hold federal leases and permits, could finance turbines with new offtake agreements
- New York soliciting new bids for offshore wind power
BP and Equinor have canceled the Empire Wind 2 project, a major offshore wind contract near New York, leaving plans to provide clean power to hundreds of thousands of people in limbo. The cancellation was caused by inflation, interest rates, and supply chain disruptions, which have led to soaring materials costs and reduced expected margins on wind power projects. This setback is not unique, as similar projects in New Jersey have also been derailed by these pressures. The cancellation represents a setback for America’s clean power goals, as President Joe Biden had announced a goal to install 30 gigawatts of offshore wind power by 2030. However, there is still hope for the Empire Wind 2 project, as the companies still hold federal leases and permits and could finance turbines with new offtake agreements. New York is also soliciting new bids for offshore wind power to replace the power that BP and Equinor were expected to provide.
Public Companies: BP (BP), Equinor (EQNR), Orsted (ORSTED), TotalEnergies (TTE)
Private Companies:
Key People:
Factuality Level: 7
Justification: The article provides information about the cancellation of the Empire Wind 2 offshore wind project by BP and Equinor due to rising materials costs. It mentions the reasons for the cancellation, such as inflation, interest rates, and supply chain disruptions. It also provides examples of similar projects being derailed by these forces. The article mentions the impact on the companies’ stocks and the setback for America’s clean power goals. It also mentions the possibility of the project being revived through other agreements and the state’s efforts to solicit new bids for offshore wind power. Overall, the article provides factual information about the situation, but it could benefit from more context and analysis.
Noise Level: 3
Justification: The article provides relevant information about the cancellation of a major offshore wind contract due to rising materials costs. It mentions the reasons for the cancellation and provides examples of similar projects being derailed by inflation and supply chain disruptions. It also discusses the impact on clean power goals and the potential for alternative agreements. However, there is some unrelated information about stock prices and the Middle East that is not directly relevant to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: The cancellation of the major offshore wind contract by BP and Equinor near New York may impact the renewable energy sector and the companies involved.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the cancellation of a major offshore wind contract due to rising materials costs, inflation, interest rates, and supply chain disruptions. While there is no extreme event mentioned, the financial markets and companies involved in the renewable energy sector may be impacted by this development.
www.marketwatch.com 
