Becalmed and bedeviled: Ørsted “delays” NJ offshore windfarm to 2026

At the end of August, I was giddily posting about more wind industry travails. In particular, the struggles Danish wind farm giant Ørsted was having as costs soared, warranty issues with expensive crappy product had begun eating them alive, and supply disruptions were making it impossible to stay on schedule and/or replace warrantied parts.

Grifting margins had basically evaporated to the point that their CEO was threatening to pull out of major U.S. projects if Ørsted didn’t receive more of that schweet government cha-ching to help off-set their under-bidding the projects. This would also help save New Jersey/Massachusetts/New Hampshire etc rate-payers from bankruptingly expensive utility bills.

…But back to Ørsted’s financial woes – there was some very interesting news buried in the litany of inflation, materials, etc., snafus that were taking a massive toll on the company’s bottom line. There was the CEO’s outright threat that if they don’t get more monies from the feds (or as federal money is known: you and me) they’ll take their turbines and go home.

I have developed a bad case of “don’t let a blade hit you in the asterisk as you leave” in answer to that.

Green energy enthusiasts’ dreams of hundreds of giant windmills off the coasts of the United States took another hit Wednesday when the world’s largest producer of the required turbines reported steep losses and warned of “severe” setbacks in its American operations.

The Danish firm, Orsted, which also operates wind farms in Britain’s North Sea, said it may be forced to take a $2.3 billion hit on its U.S. portfolio because of snarls in the supply chain, rising interest rates, and slowing taxpayer subsidies from the Biden administration.

Orsted raced into the American market but faces multiple challenges as rising interest rates, supply chain disruptions and, doubts over how many billions of dollars in tax credits the company would be eligible for, mean investors have wiped $11bn from the group’s market… pic.twitter.com/oU1vUDz2jy

— Net Zero Watch (@NetZeroWatch) September 12, 2023

The cage rattling threats came fast and furious. I’ll bet Ørsted thought they’d be able to shake some money out of trees for a least a few of these projects, considering how much was on the line image-wise for some of their biggest boosters. Verminous NJ Governor Phil Murphy had tried to bulldoze the Ocean 1 wind farm project off his state’s SE shoreline into existence by virtue of his gubernatorial power alone (certainly not his personal star power – ew), regardless of a score of dead whales washing ashore, counties and cities from Cape May to Ft Lee banding together to fight the scourge off, and cratering public approval.

A majority of New Jersey adults are still favor of the development of offshore wind energy, but support has plunged compared to just a few years ago, according to the latest Monmouth University Poll.

As New Jersey inches closer to getting its first offshore wind farm, the latest poll finds that just 54% are in favor of the move, and 40% oppose it. Support was at 76% and opposition was at 15% in a 2019 version of the poll.

Democratic support over the past four years has remained stable, but Republican backing has slipped from 69% to 28%. Support from independents moved from 77% to 52%.

The poll also showed nearly half of New Jersey residents believe the wind projects are responsible for a rise in the deaths of marine mammals.

The fight was on, big time.

I still can’t believe it, but while I was watching films on sonar surveying and listening to the racket (legitimate explanation for the huge increase in sea mammal deaths) and running wind industry numbers, somehow this YUGE NEWS slipped right by.

NEW JERSEY WIND FARM PROJECT IS DELAYED – WILL IT EVER HAPPEN?

There is no doubt in my mind that the relentless and effective campaign by the people to oppose New Jersey Wind Farms has led Orsted to announce a delay of it’s Ocean Wind I project until 2026.

The citizens of New Jersey have gathered in large numbers to express their outrage about the unprecedented number of whales and dolphins dying along the coast of New Jersey.

United States Congressman Jeff Van Drew, R-NJ-2, along with New Jersey Senators Vince Polistina, R-2 and Michael Testa, R-1 … working together with a significant number of local elected officials have demonstrated true leadership in the face of a political scheme to try and implement massive wind turbines off of the New Jersey coastlines.

Hallelujah. And deep-sixing the entire thing is still not off the table. That’s fabulous.

In a blow to New Jersey’s clean energy plans, a Danish company behind the state’s first offshore wind project is delaying it until 2026, citing supply chain issues and a lack of financial support from the federal government.

Ørsted announced on Wednesday, that it is delaying construction on Ocean Wind I off the southern New Jersey coast as it moves to write off about $2.3 billion in costs for several offshore wind projects that have depreciated since they were first proposed.

The company said it had considered scrapping the New Jersey project altogether but still believes it will be economically viable in the long run.

“As it stands today, we believe the best direction is to continue to invest in these projects, David Hardy, an executive vice president and CEO of the company’s North American operations, said during an earnings call. “If the walk-away scenario is the economical, rational decision for us, then this remains a real scenario for us.”

This goes for their planned Ocean Wind 2 project off the Jersey coast, as well. It all comes to a screeching halt.

And, for the record, Gov Phil Murphy?

Is a conniving snek.

…In July, Murphy signed an agreement with Ørsted, allowing the company to keep federal tax credits that were supposed to be passed to New Jersey utility ratepayers to offset the potential for higher electricity rates.

Murphy and Democrats who pushed the plan through the state Legislature argued the tax relief was needed to help the company deal with inflation and the lingering impact of the COVID-19 pandemic.

New Jersey Republicans have strongly criticized the plan, which they said would cost the state an estimated $1 billion and shift the cost of developing offshore wind to taxpayers.

The move has drawn a lawsuit from citizen groups who argue that the tax breaks are unconstitutional.

It’s NJ – I wonder what he and those Democrats got in return for screwing over NJ taxpayers. Murphy just held on to reelection by the points of his tiny yellow teeth this last go-round. And he’s term limited, so you’d better believe he’s making sure there’s a cushioned landing in his feathered rat’s nest.

“One hand washes the other” didn’t get to be the NJ state motto by accident.

It’s a time-honored function of civic office.

God willing enough people boot these scum to the curb come election time.

…The delay to 2026 is an interesting development, because there very well may be a Republican Governor in New Jersey and Republican majorities in both Houses of Congress and a new President may be in place.

Meaning that the political environment could be very different at the point Orsted may be looking to implement their Wind Farm project.

For example, Jack Ciatterelli is the leading candidate to be the next Governor of New Jersey.

Using another Jerseyism, I fervently hope the political careers of Murphy and his Democrat accomplices wind up sleeping with the fishes.

Off a quiet, turbine-free Jersey shore.