NEW YORK, NY – Danish energy giant Orsted A/S faced significant challenges this week, impacting New Jersey’s renewable energy ambitions. The company withdrew from the Ocean Winds 1 & 2 offshore wind energy farms in New Jersey.
Orsted’s stock value plummeted once again on the news with another large drop in value. The stock has gone from $75 to $13 following this decision and other setbacks over the past two years.
The company recently exited a European offshore wind project and witnessed a reshuffling of its executive team. Daniel Lerup, the finance chief, and Richard Hunter, the chief operating officer, left their positions amid these changes.
The withdrawal from the New Jersey projects has raised concerns over the company’s commitment to pay $300 million owed to the state. Governor Phil Murphy expressed determination to secure these funds amidst uncertainties in the wind energy market.
Additionally, Orsted withdrew from a Norwegian offshore wind project partnership, citing strategic investment priorities. This decision marked another retreat for the company, which faced a third-quarter net loss due to cost overruns and project cancellations in the United States.
The company’s CEO, Mads Nipper, acknowledged the need for new strategies and capabilities to steer Orsted through these turbulent times. The recent developments cast doubt on some key clean energy initiatives in the U.S. and Europe.
Governor Phil Murphy has signaled he would take the Danish energy company to court to recoup the $300 million investment loss and guarantee made by Orsted before they abandoned the New Jersey project.