Orsted has ceased development of the 2248MW Ocean Wind 1 and 2 offshore wind projects in the US.
The Danish developer said macroeconomic factors have changed “dramatically over a short period of time”, leading to the decision, which is part of a wider review of its stateside business.
Supply chain bottlenecks have also impacted long term plans as have rising interest rates, according to its US boss David Hardy.
The decision has resulted in Orsted taking an impairment on the development of €2.7bn (Dkr19.9 billion).
“As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2,” he said.
“We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a U.S. and global hub for offshore wind energy.
“I want to thank Governor Murphy and NJ state and local leaders who helped support these projects and continue to lead the region in developing American renewable energy and jobs.”
The company intends to retain the seabed lease area and consider the best options as part of the ongoing portfolio review.
Meanwhile, the Danish developer has taken a final investment decision on the 704MW Revolution Wind project, a joint venture with Eversource.
“With our final investment decision, we’re solidifying our commitment to building our second commercial-scale offshore wind farm in the United States, helping to deliver more American energy and American jobs,” Hardy added.
“I want to thank our Ørsted employees who helped achieve FID for Revolution, as well as our team at South Fork Wind building New York’s first offshore wind farm, our New Jersey team that worked tirelessly to advance these projects, and our land-based team delivering across our portfolio.
“As we manage and deliver in a challenging market, our team of experts sets itself apart.”