Posted on 11/01/2023 12:51:29 PM PDT by Red Badger
Democrat President Joe Biden’s globalist green agenda has just been hit with a severe blow after the world’s largest offshore wind farm developer abandoned two major U.S. projects.
Danish wind energy company Orsted A/S announced it has pulled out of the projects due to supply chain and interest rate impacts and recorded impairment charges well above previous forecasts.
Orsted says it was forced to cease the development of the Ocean Wind 1 and 2 projects off the coast of New Jersey.
The news comes amid a wider downturn in the green energy industry.
As Slay News reported last week, several major automakers have just announced that they are scaling back production of expensive electric vehicles (EVs) amid declining consumer interest and slow sales.
In a seemingly coordinated move, Ford, Honda, and General Motors all announced significant rollbacks of EV production.
In a statement about the canceled wind farm projects, Orsted said:
“US offshore wind projects have experienced further negative developments from adverse impacts relating to supply chains, increased interest rates, and the lack of an OREC (Offshore Renewable Energy Certificate) adjustment on Sunrise Wind.
“Total impairments recognized in the interim financial report for the first nine months of 2023 amount to DKK 28.4 billion [$4 billion], and the majority of these (DKK 19.9 billion) relate to Ocean Wind 1,” Orsted stated.
This figure is much larger than the previously announced impairment in August on its U.S. portfolio of up to DKK 16 billion.
“This is a consequence of additional supplier delays further impacting the project schedule and leading to an additional significant project delay,” the company said.
Orsted CEO Mads Nipper said he was “extremely disappointed to announce that we are ceasing the development of Ocean Wind 1 and 2.”
“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,” he added.
Following the news, shares in the Denmark-listed green energy giant crashed as much as 22%.
Share prices fell to lows not seen in six years.
The move may not have been a surprise, however.
In August, Nipper warned that the projects were facing headwinds.
“The situation in U.S. offshore wind is severe,” Nipper asserted.
“We are still upholding a real option to walk away,” he told Bloomberg a few weeks later.
The Biden administration has touted offshore wind farms as an essential component of “decarbonizing” America’s energy grid.
Under the Inflation Reduction Act, Orsted has received upwards of 30% tax credits.
However, the tax credits are no longer enough as a financial crisis continues to brew in the offshore wind power industry.
Last week, Germany’s Siemens Energy crashed.
The crash came after the company warned its wind turbine business is grappling with quality issues and offshore ramp-up challenges.
In the solar industry, meanwhile, SolarEdge Technologies shares plunged about two weeks ago.
The drop in share prices came after the company warned that European demand is sliding.
Does Biden have to give his 10% back?
Several someones got rich, but guess who will end up footing the bill? Thanks to the people who vote in these idiots and will continue to do so.
If it could be proven commercially viable, they’d be doing it. It can’t; they won’t.
If it could be proven commercially viable, they’d be doing it. It can’t; they won’t.
Gone like a fart in the wind...
The idiots are the voters the ones pushing this BS are evil fascists who will inflict misery on all of us.
One hurricane and all their investment becomes a home for fishes....................
I think even Tesla will turn....cuz he likes to see people happy.
Save the whales!!
Save the dollars!
We can make more whales!...............
“In August, Nipper warned that the projects were facing headwinds.”
Ba-da bump.
The answer my friend,
Is blowin’ in the wind.................
I was recently in the northeast on the Atlantic coast (New Brunswick) and experienced strong winds every day I was there. I can see the appeal for wind power. But even with that experience I could tell it was too intermittent an energy source to make grid power depend on it.
At most, if I lived in that area, I'd be interested in pico wind turbines for my own home to give me free power part of the time so it'd reduce how much power overall I buy from the grid. Beyond that I can't see a practical use for wind power even in that setting.
Ha. Thanks for posting!
It doesn’t matter what you do. What’s important is what you promise and who you pay.
Bob Blue. Dominion Energy. Are you listening?
Leave it to democrats to ruin a great energy company.
What BS. It was a HUGE money loser from the get-go.
The Green New Deal will soon become a withered brown; dry and lifeless.
One drive thru Palm Springs will shock just about anyone.
Oily, dirty wind towers everywhere.
No wonder property values in Palm Springs haven’t mirrored much of CA.
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