New Jersey to Receive $125 Million From Orsted After Offshore Wind Projects Halted

By Stephen Nakrosis

Orsted will pay New Jersey $125 million after the Danish energy company decided to cease development on the Ocean Wind 1 and Ocean Wind 2 projects, according to the state's Board of Public Utilities.

The funds will be used to support investments in qualified wind energy facilities and other clean energy programs, the board said Tuesday.

Last year, Orsted said it was pulling out of the offshore wind projects, citing supply-chain issues and higher interest rates, among other factors. In the third quarter, the company booked an impairment charge of over $4 billion related to its offshore wind portfolio in the U.S.

In February, the company announced a number of cost-cutting measures, including a pause to dividend payments.

Also on Tuesday, New Jersey said it would accelerate its offshore wind solicitation schedule, expediting the projected opening of a fifth offshore wind solicitation from the third quarter of 2026 to the second quarter of 2025.

In addition, the board said it will pause on moving forward with a Second State Agreement Approach for coordinated offshore wind transmission planning with regional grid operator, PJM Interconnection.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

May 28, 2024 19:11 ET (23:11 GMT)

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