Orsted Cancels Major New Jersey Wind Projects, Undermines State's Renewable Energy Plans

Orsted scraps New Jersey offshore wind projects citing supply chain issues and rising costs, leading to a $4bn write-off and throwing Governor Murphy's renewable energy plan into disarray.

Orsted, a Danish wind energy developer, has cancelled two significant offshore wind projects in New Jersey, leading to a $4 billion write-off and dismantling one of Governor Phil Murphy’s key renewable energy strategies.
The two shelved projects, Ocean Wind 1 and Ocean Wind 2, were expected to generate enough electricity to power 500,000 homes and come online in 2025 and 2028 respectively.
These cancellations not only disrupt New Jersey's renewable energy plans but also endanger the state's economic expansion, as Governor Murphy previously halted natural gas projects such as the proposed Northeast Supply Enhancement Project in reliance on the wind energy potential.
Orsted, along with other companies in the wind industry including Norway's Equinor and BP of the United Kingdom, is grappling with substantial financial losses due to rising material costs and supply chain issues.
The cancellations also jeopardize President Joe Biden’s goal to power 10 million homes with ocean-based turbines by the end of the decade, reflecting the struggling offshore wind industry in the United States.