DELMARVA - Alternative energy company Orsted has announced a significant change in plans for its 966-megawatt Skipjack project off the coast of Delmarva.
According to Orsted, financial incentives provided by Maryland for the company to pursue the project are no longer enough for Skipjack to continue off the coast.
Orsted says those incentives, established in the Maryland Public Service Commission Orders, are no longer commercially viable due to the market, inflation, high interest rates, supply chain constraints. Orsted says it has therefore pulled out from those orders with Maryland.
The Skipjack project initially called for 60 to 70 wind turbines off the coast of Delmarva.
The energy company did say they still intend to continue developing and permitting for the Skipjack project, though in conjunction with what state, including Maryland, remains to be seen. Orsted Group Executive Vice President and CEO Americas at Orsted David Hardy did say the withdrawal would allow the Skipjack project to “reposition” for future finance agreements.
Hardy says Orsted anticipates several future opportunities for the project and the company will evaluate them as they become available.
“We are grateful to Governor Moore, the Maryland Public Service Commission and the State of Maryland for their steadfast partnership and support as we have worked diligently to develop Skipjack Wind under challenging economic circumstances,” Hardy said in a statement. “We fully support the state’s leadership as they pursue their ambitious offshore wind goal. We also thank the State of Delaware for its collaborative approach to supporting Skipjack Wind’s development.”
Maryland Governor Wes Moore issued a statement Thursday night in response to Orsted's announcement.
"Governor Moore is disappointed by the news of Orsted's repositioning of the Skipjack Wind project, an effort that has the capacity to impact the lives of so many Marylanders," Moore's office said.
The Governor's Office reiterated that he will continue to pursue a goal of 100% clean energy by 2035.
Another energy company, US Wind, is still in negotiations with Maryland and Delaware over their two proposed offshore wind projects, MarWin and Momentum Wind.
***UPDATE:
The reaction to Thursday's news has lead to mixed reviews on Delmarva. While some view this as a major setback to Maryland's offshore wind plans, other's believe Orsted is just hitting the pause button.
Rick Meehan, Ocean City's mayor, is hoping Orsted takes this time to address worries about offshore wind.
"The concerns of the town of Ocean City, the concerns of environmentalists, the concerns of commercial fishermen, the concerns of recreational fishermen," said Meehan.
Mike Dunn with the Greater Salisbury Committee feels the door is still very much open for the Skipjack projects.
"I don't think that they committed yesterday to leaving and abandoning Delmarva," said Dunn. "They just sort of announced that they have to hit pause and rethink and recalibrate how they're going to pay and make all of this happen."
Orsted's move has garnered disappointment outside of Maryland's governor. In a statement to WBOC, Maryland Public Service Commission Chair Frederick Hoover said "Yesterday’s news from Orsted is disappointing—the Skipjack project was an important component in advancing Maryland’s clean energy goals. However, the Commission remains optimistic about the future of the offshore wind industry in Maryland, and would note that the US Wind project continues to move through the federal approval process."
