SOUTH JERSEY (KYW Newsradio) — Supply chain and inflation issues are causing big problems for the Danish wind energy company Orsted, which has been planning to build an offshore wind farm in New Jersey. Company leaders say they must be willing to cut bait on projects that don’t make financial sense.
Orsted’s stock dropped 8% on Tuesday, downgrading the company from stable to negative, according to the credit rating agency Moody’s. Shares have dropped nearly 40% this year. Orsted CEO Mads Nipper said they must be prepared to walk away from projects in the U.S. that aren’t working.
Orsted officials noted, however, that they have not paused or delayed any of their plans in New Jersey. Construction on Ocean Wind 1 is still set to ramp up early next year.
However, completion of the project will likely be delayed until later in 2026 as the company faces supply chain and inflation complications.
RELATED
Orsted’s struggles were welcome news for opponents of wind farms. Robin Shaffer with Protect Our Coast NJ said they will keep pushing to block construction.
“Until we hear that they are walking away from the project and other companies like Orsted are going to walk away from other reckless projects along the East Coast, we’re not going to sleep,” he said. “We’re going to keep pushing.”
Gov. Phil Murphy said it’s important to stay the course, as wind energy is a vital part of moving New Jersey to 100% renewable energy by 2035. Murphy wants the state to be a national leader in the construction of offshore wind components.