East Coast Offshore Wind Farm Faces Delays Amid Supply Chain Challenges and Funding Issues
A number of factors, including supply chain challenges, have caused the offshore wind farm off the coast of New Jersey that was planned by international wind energy producer Ørsted to be postponed until 2026.
Along the shores of Maryland, Delaware, New Jersey, New York, and Rhode Island, the business, which has its headquarters in Fredericia, Denmark, plans to build a number of offshore wind farms.
According to the Associated Press, the Danish company, Ørsted, disclosed the delay during an earnings call on Wednesday and acknowledged that it might be required to write off approximately $2.3 billion in U.S. projects that turned out to be less valuable than initial estimates.
In particular, the company asserted that delays at the wind farm were caused by supply chain problems, higher borrowing rates, and a lack of federal tax incentives.
It was also made known that the business was thinking about giving up on the Ocean Wind I project, which was supposed to be located off the southern New Jersey shore.
The U.S. Bureau of Ocean Energy Management granted permission for the Ørsted Ocean Wind I project in July to start building a wind farm 13 to 15 miles off the shore of Atlantic City and Ocean City.
At the federal and state levels, more approvals are still needed, but Ørsted said it anticipates having them in hand by the second quarter of 2024.
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Ørsted’s Wind Farm Plans
This fall, work is scheduled to start on the wind farm’s almost 100 wind turbines. It intends to supply 500,000 houses with adequate electricity to run them.
The construction of a second wind farm off the coast of New Jersey, known as Ocean Wind II, is also authorized by Ørsted, though that project isn’t quite as far along in the regulatory process.
Even though the corporation admitted on Wednesday that it had given the idea some thought, it still feels confident in its long-term viability.
It will now be somewhere in 2026 before the project is completed and clients begin receiving power, which was originally planned to happen sometime in 2025.
However, the business stated during the call that Ocean Wind II and its Skipjack Wind project off the coastlines of Maryland and Delaware are being “reconfiguring” since they currently do not satisfy anticipated financial benchmarks. There was no information given concerning the reconfiguration.
Before the project is finished and clients start receiving power, which was initially anticipated to happen sometime in 2025, it will now be sometime in 2026.
Yet according to the company, as Ocean Wind II and its Skipjack Wind project off the coasts of Maryland and Delaware are currently failing to meet expected financial benchmarks, they are being “reconfiguring” No information was provided regarding the reconfiguration.
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Source: Fox Business
