Wind industry deals with blowback from Orsted scrapping 2 wind power projects in New Jersey

ATLANTIC CITY, N.J. — Wind energy developer Orsted is writing off $4 billion, due largely to the cancellation of two large offshore wind projects in New Jersey whose financial challenges mirror those facing the nascent industry. The Danish company said Tuesday night it is scrapping its Ocean Wind I and II projects off the coast of southern New Jersey due to problems with supply chains, higher interest rates, and a failure to obtain the amount of tax credits the company wanted. He said the company, the world’s largest offshore wind developer, decided “to de-risk the most painful part of our portfolio, and that is the U.S.” That statement went straight to the heart about concerns over the financial viability of the offshore wind industry in the northeastern U.S., which is in its infancy but has extensive plans from New England to the Carolinas. Rep. Jeff Van Drew, a Republican who represents the area in southern New Jersey where Orsted’s wind farms would have been built, exulted in the decision to scrap the projects.