Major offshore wind company takes huge losses after struggling to get more Biden bucks
A Danish offshore wind company with major projects in the U.S. has taken huge losses Wednesday after warning about its so-far unsuccessful effort to get more federal subsidies, according to Reuters.
Orsted stated Tuesday that it anticipates that its three developments in U.S. waters may be $2.3 billion less valuable than anticipated, in part because the firm is having trouble receiving more tax credits from the Biden administration, according to Reuters. Other problems the firm’s projects face include supply chain backups and rising interest rates that make refinancing difficult.
“The situation in U.S. offshore wind is severe,” Orsted’s CEO, Mads Nipper, said to reporters on a conference call, according to Reuters. The company may cut its losses and walk away from its U.S. portfolio, according to Windpower Monthly, a potential move which would be a major setback to the Biden administration’s offshore wind ambitions.
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Meanwhile, a Tuesday offshore wind lease sale for three zones in the Gulf of Mexico flopped, with two of the zones receiving zero bids from any of the numerous eligible companies that reportedly had some level of interest in the sales. The third zone received a total of three bids from two companies, and the final sale price stands as the lowest amount received for an offshore wind lease sale since the Obama administration was in office.