Yesterday was not a good day for US offshore wind. Not only was the Gulf of Mexico wind lease sale disappointing, but Orsted announced US impairments of $2.3 billion causing their share price to fall to the lowest level in more than 4 years.
Unsurprisingly, Orsted management assumes no responsibility for the company’s poor performance, blaming supply chain problems, high interest rates and “a lack of new tax credits.” Outsiders might suggest that there were other factors such as irrational exuberance in the acquisition of wind leases at inflated prices, and unrealistic expectations regarding a complementary power source that is dependent on government mandates and subsidies.
“The situation in U.S. offshore wind is severe,” Chief Executive Mads Nipper told reporters on a conference call.
Reuters
Bud's Offshore Energy (BOE) 