Supply-chain issues and rising interest rates lead to cancellation, while Virginia’s wind farm plan gets approval
- Orsted is canceling two offshore wind-power projects in New Jersey due to supply-chain issues and rising interest rates
- The cancellation adds uncertainty to the nascent offshore wind industry
- Orsted stands to lose a $100 million guarantee it posted with New Jersey
- Orsted will move forward with its Revolution Wind project in Connecticut and Rhode Island
- Federal regulators approve Dominion Energy’s wind farm plan off Virginia
Danish energy developer Orsted has announced the cancellation of its Ocean Wind I and II projects in southern New Jersey. The company cited supply-chain issues and rising interest rates as the reasons behind the decision. This cancellation raises concerns for the nascent offshore wind industry, which the Biden administration and many state governments are relying on to transition away from fossil fuels. Orsted stands to lose a $100 million guarantee it posted with New Jersey. However, the company will continue with its Revolution Wind project in Connecticut and Rhode Island. Meanwhile, federal regulators have approved Dominion Energy’s plan to build an enormous wind farm off the coast of Virginia. The project is expected to be the largest offshore wind farm under development in the U.S. and will generate enough electricity to power up to 660,000 homes.
Public Companies: Orsted (ORSTED), Dominion Energy (D), Iberdrola (IBE)
Private Companies: undefined, undefined, undefined
Key People: Mads Nipper (CEO of Orsted), Phil Murphy (Governor of New Jersey)
Factuality Level: 7
Justification: The article provides information about Danish energy developer Orsted canceling two offshore wind-power projects in New Jersey due to supply-chain issues and rising interest rates. It includes statements from Orsted’s CEO and New Jersey Governor Phil Murphy. The article also mentions setbacks and opposition faced by the offshore wind industry in the northeast. Overall, the article presents factual information about the cancellation of the projects and the challenges faced by the industry.
Noise Level: 3
Justification: The article provides relevant information about Orsted canceling two offshore wind-power projects in New Jersey due to supply-chain issues and rising interest rates. It also includes the response from New Jersey Governor Phil Murphy and mentions other setbacks in the offshore wind industry. However, the article lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: The cancellation of the offshore wind-power projects by Orsted in New Jersey may impact the renewable energy sector and related companies in the region.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The cancellation of the projects can have financial implications for Orsted and may affect the growth of the offshore wind industry in New Jersey.
