Orsted, the Danish company seeking to build a massive wind farm off the coast of New Jersey has been dealt multiple financial blows this week. After the company’s stock tumbled more than 25% this week, the company came back to the table seeking more taxpayer handouts to complete the job.
Today, the company announced a delay in the construction of its first offshore wind farm in New Jersey. The project, originally slated for completion prior to 2026, faces setbacks due to supply chain issues, increasing interest rates, and insufficient federal tax credits.
The Danish company made the announcement during an earnings conference call on Wednesday. During the call, Orsted disclosed that it might need to write off approximately $2.3 billion on U.S. projects now valued at less than initially anticipated.
While the firm considered abandoning the Ocean Wind I project located off the southern New Jersey coast, it still projects profitability in the long term.
The wind farm is planned for waters off of Atlantic City and Ocean City.
The company received a bailout from New Jersey Governor Phil Murphy and state Democrats earlier this summer.
Michael Testa, a New Jersey Senator said the state needs to shut the door on the financially unstable and unpopular project.
“It was a travesty when Governor Murphy bailed out Ørsted at the expense of New Jersey taxpayers the first time they threatened to walk away. I’m calling on the Murphy administration to state unequivocally that our residents will not be sold out for Ørsted a second time,” Testa, R-Cape May, Cumberland, Atlantic, said in a news release.