CNBC's Catherine Clifford is reporting that Orsted just cancelled two major wind projects and wrote down $4 Billion in losses.
The Danish wind power company Orsted has canceled two offshore wind projects, Ocean Wind 1 and Ocean Wind 2, located off the New Jersey coast, leading to a $4 billion impairment for the first nine months of the year. The firm may face up to $5.55 billion in total write-offs, as they have also set aside an additional $1.55 billion for potential contract cancellation fees. CEO Mads Nipper attributed the cancellations to supply chain issues and rising interest rates. The Ocean Wind 1 project, slated to begin construction this fall, would have been New Jersey's inaugural offshore wind farm, powering approximately 500,000 homes with 98 turbines. However, despite these setbacks, Orsted remains committed to the U.S. renewables market and is progressing with the Revolution Wind project. The company had warned investors earlier about possible financial impairments and is based in Denmark, boasting a 2022 revenue of $18.7 billion.
(This article was written with assitance from ChatGPT)