– Energy developer delivers major blow to blue state’s climate agenda by canceling offshore wind contracts
– Energy developer deals blow to blue state’s climate agenda by scrapping offshore wind agreements.
Orsted Withdraws from Offshore Wind Projects in Maryland
Multinational energy developer Orsted has unexpectedly pulled out of agreements with the State of Maryland to develop two offshore wind projects. The decision comes as Orsted cites worsening economic conditions as the reason for the withdrawal. The projects, known as Skipjack Wind 1 and Skipjack Wind 2, were approved by the Maryland Public Service Commission (PSC) years ago and were a key part of the state’s decarbonization agenda.
Orsted’s group executive vice president and CEO of its Americas division, David Hardy, stated that the company is committed to developing value-creating projects and sees an opportunity to reposition Skipjack Wind for future opportunities. Although the projects have been withdrawn, Orsted will continue to advance their development and permitting, submitting an up-to-date Construction and Operations Plan to the U.S. Department of the Interior.
Democratic Maryland Governor Wes Moore expressed disappointment with Orsted’s decision, as the Skipjack Wind project had the potential to impact the lives of many Marylanders. However, Governor Moore remains committed to working towards Maryland’s goal of achieving 100% clean energy by 2035.
The joint Skipjack Wind project was set to be constructed off the coast of the Delmarva Peninsula near the Maryland-Delaware border. With a total capacity of 966 megawatts, the projects would have been able to power hundreds of thousands of homes. However, with Orsted’s withdrawal, Maryland is now left with only two proposed offshore wind projects: the MarWin project and the Momentum Wind project, both being developed by Baltimore firm US Wind off the coast of Ocean City, Maryland.
Maryland Public Service Commission Chairman Frederick Hoover expressed disappointment in Orsted’s decision but remains optimistic about the future of the offshore wind industry in Maryland. The US Wind project is still moving through the federal approval process.
Republican Maryland Representative Andy Harris, on the other hand, welcomed Orsted’s decision, echoing the sentiments of watermen and residents who have expressed concerns about offshore wind industrialization in the state.
This withdrawal by Orsted is not an isolated incident, as other offshore wind projects have faced similar challenges. In November, Orsted canceled its Ocean Wind 1 and Ocean Wind 2 projects off the coast of New Jersey, and recently, Equinor and BP pulled out of a contract for their Empire Wind 2 project in New York.
These setbacks pose a threat to the green energy goals set by Democratic-led states and the Biden administration. President Biden aims to deploy 30 gigawatts of offshore wind energy by 2030 and achieve a fully decarbonized power grid by 2035.
Critics argue that these offshore wind projects are unaffordable and unsustainable, leading to disruptions and price increases. Dave Stevenson, the director of the Center for Energy Competitiveness at the Delaware-based think tank Caesar Rodney Institute, suggests exploring alternative methods of generating electricity to meet future energy demands.
In conclusion, Orsted’s withdrawal from the offshore wind projects in Maryland highlights the challenges and economic uncertainties faced by the renewable energy industry. The future of offshore wind development in Maryland and other states remains uncertain, as stakeholders navigate the complex landscape of clean energy goals and economic viability..
– Energy developer delivers major blow to blue state’s climate agenda by canceling offshore wind contracts
– Offshore wind contracts canceled, dealing a major blow to blue state’s climate agenda.
