DELMARVA - Denmark’s renewable energy Orsted’s future plans for a Delmarva offshore wind projects may be on shakier ground than previously thought.
After scrapping plans for two projects in New Jersey, Orsted is reportedly remaining cautious on their plans for our area, despite maintaining optimistic public messaging.
Yesterday, Orsted told WBOC, "Orsted continues to develop Skipjack and expects to have more clarity on its path forward as we continue discussions with stakeholders in Maryland and Delaware."
Yet in a Q3 presentation just the day before, Orsted executives said the Skipjack project, originally planned off the coast of Worcester County, MD and Sussex County, DE, was on hold.
“We have paused all spend on Skipjack,” Orsted CEO Mads Nipper told investors Wednesday.
Increased interest rates and supply chain costs led to Orsted’s decision to cease development of their Ocean Wind 1 and 2 projects in New Jersey, according to the audio recording of the company’s Interim Report on November 1st.
Based on the magnitude of those “severe developments,” Orsted’s CEO says, they have started a complete review of their US offshore projects.
“If no significant OREC adjustments are made in the near future,” Orsted CEO Mads Nipper said during the interim report, “the company will either cease the development of the project or pursue alternative commercial solutions.”
ORECs are Offshore Renewable Energy Certificates, awarded to the company by the State.
During the recorded interim report this week, Orsted executives said they expect to make a decision on the project before 2023’s Q4 Financial announcement.
Whereas bowing out of the New Jersey projects reportedly cost the company significant financial wounds, the monetary risk of dropping Delmarva’s Skipjack project would bear far less The When asked what the fees incurred would be for walking away from the Skipjack project, Orsted’s CFO Daniel Lerup called them “insignificant.”
Whether the company decides to move ahead on the project or take a similar path as they did in New Jersey remains to be seen.
WBOC’s Chris Weimer will have more on this story tonight.