From Bloomberg via gCaptain, August 15:
Orsted A/S booked an impairment of more than $500 million related to an offshore wind farm in the US and a canceled green hydrogen plant in Sweden.
The action shows that Chief Executive Officer Mads Nipper’s turnaround plan for the Danish wind developer still has some way to go before bearing fruit. In total, the firm took a hit of 3.9 billion Danish kroner ($580 million) in the second quarter, including from delays at the Revolution Wind project off Connecticut and Rhode Island.
Shares fell as much as 9.3% in Copenhagen, the biggest drop since November.
It’s the latest sign of trouble for the nascent US offshore wind market that’s been a key part of President Joe Biden’s plans to decarbonize the American power grid. Orsted had to cancel two major projects in the US last year after delays and supply chain issues added unmanageable costs. The latest trouble shows developers still can’t predict all costs in this first generation of major projects.
“It is frustrating and unsatisfactory,” Nipper said on a call with journalists Thursday morning. “Risk is an integrated part of projects. The early stage US market is hit harder than anywhere else.”
The firm is one of the world’s biggest renewable power developers, focusing primarily on offshore wind. Its projects are key to help the European Union meet its climate goals. The company developed the first offshore wind park in Denmark in the 1990s....
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