Orsted

History

2023: Cancellation of two U.S. projects, loss of $4 billion

On November 1, 2023, it became known about the cancellation of two projects of Orsted in the United States. The decision was made by the board of directors. Because of this, the company will lose $4 billion.

According to the company, the suspension of Ocean Wind 1 and 2 projects is due to delays in supply chains, which affected timing and delayed projects for a long time. For payments related to contract breaks, Orsted separately allocated $1.5 billion.

Previously, the company has already announced its readiness for losses in 2023. In August, the company announced a write-off of $2.3 billion in its US portfolio. However, the situation worsened even more.

The Ocean Wind 1 project was to be the first power station at sea in New Jersey. The energy from the project would be enough to provide half a million houses. It was planned that construction would begin in the fall of 2023, and the launch of the project was supposed to take place in 2025. The project planned to use 98 turbines located 15 miles off the coast of New Jersey. According to the same principle, Ocean 2 was going to be implemented, but it was supposed to launch later, in 2028.

We strongly believe that the U.S. needs wind power to meet the goal of reducing carbon emissions into the atmosphere. We remain in the US renewable energy market and appreciate the US government's attempts to support the construction of the offshore electricity industry, Orsted director Mads Nipper commented on the news.

Despite the cancellation of two projects in New Jersey, in general, Orsted's activity in the United States continues: the company continues to operate projects in Maryland, New York and Rhode Island, and The Revolution Wind project has entered the construction stage. This is a joint project with Eversource.

As of 2023, Orsted employs 8,700 employees, and the company's revenue for 2022 amounted to $18.7 billion.^[1]

Notes