More NJ Taxpayer Bailouts For Wind Energy Company Orsted?

the staff of the Ridgewood blog

Atlantic City NJ, on August 17th Republican Senate Leader, Senator Anthony M. Bucco blasted Democrats for approving a $1 billion bailout of foreign wind developer, Orsted, after a press release from the company indicated strong first half profits in their offshore wind business.

Now Orsted A/S shares plunged the most on record after the renewable energy company warned of impairments of as much as 16 billion Danish kroner ($2.3 billion) to its US portfolio because of supply chain issues and soaring interest rates.

The  25% drop was the steepest since the company’s 2016 initial public offering and erased the equivalent of more than $8 billion in market value. It’s a further blow to the offshore wind industry struggling with soaring materials costs.

The company’s Ocean Wind 1, Sunrise Wind, and Revolution Wind projects in the US are being hurt by supplier delays, which could lead to writedowns of up to 5 billion kroner, it said late Tuesday. High interest rates could also add another 5 billion.

In addition, the developer is still in talks with federal stakeholders to qualify for additional tax credits, which haven’t progressed as expected. If unsuccessful, it could lead to impairments of as much as 6 billion kroner.

Meanwhile three NJ groups have filed suit in Superior Court challenging New Jersey DEP’s approval of the Ocean Wind 1 project consisting of nearly 100 turbines to be located 15 miles off New Jersey’s busiest beach communities.

Orsted’s troubles are the latest in a series of struggles for the wind-power industry, just as countries around the world demand more of the clean energy technology. Rising supply chain costs have clouded the outlook for some developers’ revenue, with others facing turmoil from critical mechanical issues.

Take the Wall Street Walking Tour https://www.facebook.com/unofficialwallstreet #walkingtournyc, #nyc, #walkingtour, #manhattan, #newyorkcity, #nyctour, #nyctourism, #tournewyork, #tournyc, #tourismnyc, #newyork, #historicnyc, #travel, #bigapple, #wallstreet, #nychistory, #wallstreettours