A slew of canceled offshore wind projects and contracts have jeopardized the Biden administration’s targets for a massive expansion of the new industry and its promise of emissions-free power for coastal states.
Sign up for the Climate Coach newsletter and get advice for life on our changing planet, in your inbox every Tuesday and Thursday.. Ocean Wind 1 and 2 became too expensive because of rising interest rates and competition for limited supplies and equipment, the company said. The projects had also become a hot-button political issue,
It’s the latest setback in a troubled year for the nascent industry, with companies in recent weeks also moving to cancel contracts to sell power to utilities in Massachusetts and Connecticut. Those cancellations have helped put into limbo more than half of the18 gigawatts, largely along the Atlantic coast, according to a tally from Timothy Fox, vice president of research at ClearView Energy Partners. headtopics.com
“That tipping point is already past,” Fox said. “With the cancellation of three different projects that are very huge, it seems unlikely.”development to date. A White House spokesman, Michael Kikukawa, said in an email that the administration’s strategy is producing results, including $7.7 billion in investment from the offshore wind industry since last summer, when the president signed the Inflation Reduction Act, which boosted climate spending.
Other Orsted projects in New York and Maryland are still in limbo, with talks ongoing with officials in those states, the company said in its statement. Orsted said that it is still committed to the industry but that its portfolio is still under review, with more decisions due in the coming months. headtopics.com