Ørsted's decision to stop the Ocean Wind 1 and Ocean Wind 2 wind turbine projects in the US is not going down well with New Jersey Governor Phil Murphy. In a statement to the American news site New Jersey Globe, he calls the decision "scandalous". At the same time, it "questions the credibility and competence of the company".
- I have instructed my administration to review all legal rights and remedies and take all necessary steps to ensure that Ørsted fully and immediately complies with its obligations. As recently as a few weeks ago, the company made public statements about the viability and progress of the Ocean Wind 1 project, he says.
The wind turbine projects were planned to be located off the coast of New Jersey. According to the company, Ocean Wind 1 was supposed to have generated electricity for half a million homes and created hundreds of new jobs.
The company's interim report, which was published on Wednesday night, shows that Ørsted has lost 19.9 billion DKK in the first nine months of 2023. In 2022, the company earned DKK 15.3 billion in the same period.
At the same time, Ørsted announced that the company has decided to stop the Ocean Wind 1 and Ocean Wind 2 projects.
Has set aside funds for further write-downs
In August, Ørsted announced that it had to write down the value of a number of American projects - including Ocean Wind 1 - by at least five billion kroner.
Following the decision to drop the two projects completely, Ørsted's downgrades amount to DKK 28.4 billion in the first nine months of the year.
The company also expects to have to set aside around DKK 8 to 11 billion more for expenses related to stopping the Ocean Wind 1 project in the fourth quarter. Ørsted is "extremely disappointed" to announce that the company is stopping the projects.
- However, the significant negative 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 stopping the development of the projects, said CEO and Group CEO Mads Nipper in a statement on Wednesday night.
/ritzau/
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