Orsted Anticipates $730 Million Impact on US Portfolio

© petert2 / Adobe Stock
© petert2 / Adobe Stock

Denmark's Orsted, the world's No. 1 offshore wind farm developer, said on Wednesday it anticipates impairments of up to 5 billion Danish crowns ($729.78 million) on its U.S. portfolio, as there is an increasing risk in its suppliers' ability to deliver on their commitments.

The Ocean Wind 1, Sunrise Wind, and Revolution Wind projects are adversely impacted by a handful of supplier delays, the company said in a statement.

The impairment charges were revealed after assessing the aggregate adverse impacts relating to the supply chain, lack of favorable tax credits and increased interest rates in the US, Orsted said.

In July, Orsted's Ocean Wind project won approval from the U.S. Interior Department, to help the country reach its goal of developing 30 gigawatts of offshore wind by 2030 on every shoreline.

Orsted bought its remaining stake in Ocean Wind 1, the 1,100 megawatt wind power project off the coast of New Jersey, from Public Service Enterprise Group earlier this year.

The company said it does not expect the anticipated impact to change its previously announced EBITDA guidance for the year.

(Reuters - Reporting by Gursimran Kaur in Bengaluru; Editing by Andy Sullivan)

Current News

Seatrium Names Adrian Teng CFO

Seatrium Names Adrian Teng CFO

Governments Take Action to Keep Offshore Wind Projects on Track

Governments Take Action to Kee

Iberdrola and Masdar to Invest $16 Billion in Green Energy

Iberdrola and Masdar to Invest

Exxon's CEO Sets Ambitious Agenda on Tight Timeline

Exxon's CEO Sets Ambitious Age

Subscribe for OE Digital E‑News

Offshore Engineer Magazine