Multinational energy developer Orsted abruptly pulled out of an agreement with Maryland to develop two offshore wind projects, citing worsening economic conditions.
Orsted is Maryland Public Service Commission (PSC) The bill, issued several years ago, gave the green light to the so-called Skipjack Wind 1 and Skipjack Wind 2 projects and selected projects for 20-year Offshore Renewable Energy Credits (OREC). Maryland Democrats have repeatedly pointed to skipjack wind development as a key part of the state's aggressive decarbonization plan.
“Today’s announcement confirms our commitment to developing value-creating projects, including the Bonito Wind project with a state that is located on strategically valuable federal land and is highly supportive of offshore wind. “This is an opportunity to reposition the plant for future generation opportunities,” said Orsted's David Hardy. Group Executive Vice President and CEO of the Americas said in a statement Thursday.
“As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available,” he continued.
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Democratic Maryland Governor Wes Moore is “disappointed by the news of Orsted's repositioning of the Skipjack Wind Project,” a spokesperson told Fox News Digital. (AP Photo/Brian Witte)
Mr Hardy added that the decision was taken in view of the “difficult economic circumstances”. Orsted said OREC, which was established in the company's agreement with the state, is no longer commercially viable as a result of market conditions such as inflation, high interest rates and supply chain constraints.
However, the developer has not completely abandoned the project and plans to continue development and permitting, as well as submit updated construction and operations plans to the U.S. Department of the Interior. Orsted said the move will allow Skipjack Wind to be repositioned for future takeoff opportunities.
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Carter Elliott, a spokesperson for Democratic Maryland Gov. Wes Moore, told FOX News Digital, “Governor Moore is committed to supporting skipjack tuna, an initiative that has the potential to impact the lives of so many Marylanders. “We are disappointed by the news of Orsted's repositioning of its wind power projects.” on mail.
“However, to build a system that will help Maryland meet the state's goal of 100% clean energy by 2035, we are working hard to build a system that will help Maryland reach its state goal of 100% clean energy by 2035. We will continue to work with advocates who recognize the potential of “If this is to be Maryland's decade, we must continue to make progress toward achieving our state's ambitious climate change goals, and the Governor remains committed to making that happen. ”
Wind turbines generate electricity at the Block Island Wind Farm near Rhode Island on July 7, 2022. This small-scale pilot project is one of the few operational offshore wind developments in the United States. (John Moore/Getty Images)
In all, the joint project would be built about 20 miles off the coast of the Delmarva Peninsula near the Maryland-Delaware border and be in operation by 2026. The combined capacity of the two projects is projected to be 966 megawatts, enough to power several hundred cars. Thousands of homes.
However, the announcement leaves only two offshore wind projects proposed for Maryland. The 300-megawatt MarWin project and the 800-megawatt Momentum Wind project, both of which will be built offshore of Ocean City, Maryland, are currently under development. by the Baltimore company US Wind.
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“Yesterday's news from Orsted is disappointing. The skipjack project was a critical component in advancing Maryland's clean energy goals,” Maryland PSC Chairman Frederick Huber said in a statement.
“However, the Commission remains optimistic about the future of Maryland's offshore wind industry and will note that U.S. wind projects continue to go through the federal approval process,” Huber added.
President Biden pointed to a wind turbine size comparison chart during the June 23, 2022 Federal-State Offshore Wind Deployment Partnership Conference. (Drew Angerer/Getty Images)
But Rep. Andy Harris, Republican of Maryland, supported Orstead's decision. The decision comes days after Orstead and other lawmakers held a public hearing in Maryland seeking to eliminate the offshore wind industry.
“This is welcome news to the many water utilities and Marylanders who have made it clear that they do not want foreign offshore wind companies to industrialize their coasts,” he said in a statement.
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Meanwhile, the Bonito wind project is one of the projects facing headwinds amid economic uncertainty. In November, Orsted announced it had canceled its Ocean Wind 1 and Ocean Wind 2 twin projects off the coast of New Jersey, and earlier this month, energy companies Equinor and BP terminated their contracts with New York state. Empire Wind 2 project.
Wind turbine blades stack up at the New Bedford Marine Terminal in Massachusetts on June 14, 2023. These blades are for the Vineyard Wind project. (David L. Ryan/Boston Globe via Getty Images)
The measure threatens to crush green energy goals set by Democratic-led states and the Biden administration. President Biden has set a goal of installing 30 gigawatts of offshore wind energy by 2030, the most ambitious goal of its kind in the world, and a goal of fully decarbonizing the electric grid by 2035. is listed.
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“These projects are unaffordable and ridiculous,” Dave Stevenson, director of the Center for Energy Competitiveness at the Caesar Rodney Institute, a Delaware-based free market think tank, said in an interview on Fox News Digital. Ta. “The question is, given these disruptions and price increases, why shouldn't we expect more?”
“The situation is only going to get worse,” said Stevenson, who is also president of the Marine Conservation Federation. “When bad news like this is repeated, it sends a clear message that we are not ready for prime time. These projects should just be canceled. Let's walk the path of
