Orsted’s $2.3 Billion Charge Exposes US Offshore Wind Woes
- Three US projects challenged by rising costs, tax uncertainty
- Offshore wind facing ‘hard realities of energy infrastructure’
A wind farm near Block Island, Rhode Island.
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Orsted A/S’s potential $2.3 billion impairment on its US projects is just the latest in a string of recent setbacks for the nascent US offshore wind industry, which is struggling to fulfill ambitious goals set by President Joe Biden.
Supply-chain issues, high interest rates and a so-far-unsuccessful bid for more federal tax credits threaten three planned projects off the US East Coast, Orsted said late Tuesday. The Danish company’s shares plunged 25%, the most on record, after its impairment warning.