Will Orsted walk away from US wind projects?

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Orsted CEO Mads Nipper says the company is "still upholding a real option to walk away" from US projects.

But he also says that Orsted is still working towards a final investment decision.

The company is facing a number of challenges that are making it difficult to make the economics of US offshore wind projects work. These challenges include:

Supply chain problems:

The global supply chain is still disrupted by the COVID-19 pandemic, which is making it difficult and expensive.

Soaring interest rates:

Rising interest rates are making it more expensive to borrow money, which is driving up the cost of offshore wind projects.

Lack of new tax credits:

The US government's tax credits for offshore wind projects expired in 2021, and Congress has not yet passed new legislation to extend them.

If Orsted does decide to walk away from US projects, it would be a major setback for the US offshore wind industry.

Orsted is the leading developer of offshore wind projects in the US, and its decision to leave would be detrimental.

This would make difficult to build the projects that are needed to meet the Biden administration's goal of 30 gigawatts of offshore wind power by 2030.

I hope you enjoyed this story about Orsted's threat to abandon US wind projects. It is a complex issue with no easy answers.

But it is an important issue to discuss, as the US offshore wind industry is essential to meeting the country's climate goals.