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Power United States

Offshore Wind Firm Cancels New Jersey Projects, As Industry's Prospects Dim 171

Orsted, a Danish offshore wind company, canceled its plans to build two wind farms off the coast of New Jersey -- "a blow to the state's efforts to cut greenhouse gas emissions and the latest shakeout in the U.S. wind industry," reports the New York Times. From the report: The move, which will force Orsted, a Danish company, to write off as much as $5.6 billion, will crimp the Biden administration's plans to make the wind industry a critical component of plans to reduce greenhouse gas emissions. High inflation and soaring interest rates are making planned projects that looked like winners several years ago no longer profitable. "The world has in many ways, from a macroeconomic and industry point of view, turned upside down," Mads Nipper, Orsted's chief executive, said on a call with reporters on Wednesday.

The two projects, known as Ocean Wind 1 and 2, were destined to provide green energy to New Jersey. They were strongly backed by the state's governor, Phil Murphy, a Democrat with national ambitions who stresses his environmental credentials but who has lately drawn scorn for falling short in combating climate change. On Wednesday he suggested that Orsted was a dishonest broker and insisted that the "future of offshore wind" along the state's 130-mile coastline remained strong. Mr. Nipper said Orsted thought that losses on the New Jersey projects would rise over time, so "the only sensible thing is to draw a line in the sand."

Offshore wind and other parts of the renewable industry have hit some snags in Europe, especially in Britain. But Mr. Nipper said the problems were more acute in the United States because early contracts lacked protection from inflation and developers incurred high costs because of delays in approvals during the Trump administration. The company's stock price fell nearly 26 percent on Wednesday after it reported a loss of about $3.2 billion for the third quarter and warned that the write-downs -- essentially a reduction in the value of the company's investments -- would affect Orsted's finances. Orsted is writing off 28.4 billion krone, or about $4 billion, now. The company estimates that it may take another charge of up to 11 billion krone later in the year.
The report notes that Orsted still plans to move forward with a $4 billion project called Revolution Wind intended to supply power to consumers in Rhode Island. Other projects are under construction, too, "like Vineyard Wind, which will eventually have 62 turbines in the waters off Martha's Vineyard, Mass."
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Offshore Wind Firm Cancels New Jersey Projects, As Industry's Prospects Dim

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  • same as in MA (Score:2, Flamebait)

    by DulcetTone ( 601692 )

    we had similar setbacks here on Cape Cod. The locals are all complaining about fears that the cables running UNDER their beach (Dowse's Beach) will somehow hurt them. They... the old folk baking in the sun without sunscreen. Puke.

    • Re:same as in MA (Score:4, Informative)

      by youngone ( 975102 ) on Wednesday November 01, 2023 @08:50PM (#63972928)
      A town near me threw a giant childish tantrum when the local power company expressed a desire to build a wind farm on hills near them.
      Now the windmills feature in all their tourism marketing and are a source of local pride. People can be bloody stupid.
      • A town near me threw a giant childish tantrum when the local power company expressed a desire to build a wind farm on hills near them. Now the windmills feature in all their tourism marketing and are a source of local pride. People can be bloody stupid.

        Welll, stupid for thinking anyone's minds have changed with respect to being for or against the turbines. Politicians are just playing with the cards they were dealt. The turbines are in place, its best to try to manufacture a positive image. Especially while they are all new and shiny and working. When they fall into disrepair and are no longer spinning the literature will probably change again.

        Disrepair and inactive is what we have on our local hills where a wind farm was installed decades ago.

        • by AmiMoJo ( 196126 )

          One thing that can really help with local support is some low cost energy for everyone affected. Give them a discount on their bills in exchange for having the turbines.

          It works for other forms of generation, where they provide local employment, district heating, and other benefits.

      • It is just a scam to raise rates for consumers. Most of the time the offshore turbines off Block Island are not even running.
      • It's not childish, we have them all over now in my state and they look like crap.
    • by drnb ( 2434720 ) on Wednesday November 01, 2023 @11:37PM (#63973124)

      we had similar setbacks here on Cape Cod. The locals are all complaining about fears that the cables running UNDER their beach (Dowse's Beach) will somehow hurt them.

      No. That's the BS they say in public. In private it's all about having their expensive views spoiled by infrastructure. It's just NIMBY, visible infrastructure is for plebes not elites. They paid a crapload of money for those ocean views. Their real fear is that in a decade or two turbines will decline into disrepair and become inactive. Further reducing the value of their view.

      • Of course, they never complain about ugly coal plants spewing smoke or strip mining - precisely because they cant see that. That stuff happens in poor parts of their state, or other states altogether who are by defnition not as good as their home state.

    • NIMBYism in its finest form.
  • by RightwingNutjob ( 1302813 ) on Wednesday November 01, 2023 @09:20PM (#63972970)

    by undoing some of the last 50 years' worth of "environmental" laws that place reviews and impact statements and the possibility of years of lawsuits in series with anything and everything, from running a power line to building a turbine.

    But they don't do this. Either because they don't really want to build stuff, just talk about it, or because they really have no clue why these regulations are a problem, or even because they expect themselves or their friends to line their pockets filing these lawsuits and/or defending against them.

    Probably a healthy mix of all three. Usually mostly harmless when it's government being government, except that now it's costing people large sums of money.

    The reason I'm not a fan of this green new deal stuff is I'm not looking forward to the day when my car breaks down or my furnace gives out and thanks to the same raging nonsense that cost these developers billions, I'll be SOL because my only option for repair or replacement is some mandatory all-electric gizmo that only works half the time, costs more than twice as much, and has a years long waitlist, as I discovered recently when looking into ground source heatpumps.

    • by Tony Isaac ( 1301187 ) on Wednesday November 01, 2023 @10:22PM (#63973042) Homepage

      Texas proves your point. Texas is a state hardly anyone would associate with "green" energy. Yet it has 3x more wind power than any other state. https://www.inspirecleanenergy... [inspirecleanenergy.com]

      Why this paradox? Because Texas has fewer regulations to block green energy, much to the chagrin of many state politicians.

      • The stupid, it burns.

        No, the real reason for the "paradox" is this map:

        https://windexchange.energy.go... [energy.gov]

        Texas has a fuckload of wind compared to California. About 90% of Texas has wind speed which is greater than all but a tiny number of the absolute best locations in California.

        This has fuck all to do with regulations and everything to do with geography.

        • Refer back to the original article, which is about regulations and lawsuits causing two major wind farm projects to be canceled in New Jersey.

          If your map showed the only reason for Texas' lead in wind power, then how do you explain the fact that Texas is also building the most solar power of any state? (Yes, California currently *has* more, but Texas has taken the lead in new solar installations.) https://www.ecowatch.com/solar... [ecowatch.com]

          • > then how do you explain the fact that Texas is also building the most solar power of any state?

            A completely jacked power infrastructure run by a corrupt monopoly that has proven completely unwilling to invest in their equipment and all to happy to charge people thousands of times the normal prices in times of crisis has made some people realize maybe they could improve their lot by being a little more self-sufficient. Not surprising that the demand for domestic batteries (which enable solar PV to conti

            • Texas solar power is primarily large solar farms that supply energy to the grid, not individual rooftop installations. Grid-scale solar energy now supplies more than 12 MW of power, out of about 90 MW total power generation for the state. https://www.ercot.com/ [ercot.com] Your accusations are not based on fact.

              And as for wind power, yes, exactly. Give people a financial incentive, and they'll embrace it. And keep government out of the way.

              • > not individual rooftop installations.

                I never said rooftop solar.

                What you have is hundreds of companies who aren't Ercot rolling out large scale solar because there is a market for power that doesn't stop working when it gets a little cold out... like natural gas in Texas does because Ercot facilities refuse to winterize.

                Residential solar is also booming, for what it's worth.

                > Grid-scale solar energy now supplies more than 12 MW of power, out of about 90 MW total power generation for the state.

                Units

                • My numbers (MW) came from here: https://www.ercot.com/ [ercot.com]

                  I don't think it's fair to criticize Texas for failing to winterize to an extent that the state hasn't seen in 125 years. California's grid suffers blackouts a whole lot more often than that.

                  You're right about the stupidity of Republicans trying to stop wind and solar. Thankfully, they're too late.

              • by jbengt ( 874751 )
                That should be GW, not MW, according to your link. Your link shows solar above 10 GW for about 7 hours a day, wind above 10 GW for about 16 hours a day, peaking above 20 GW, and demand peaking around 53 GW.
          • Refer back to the original article

            But regulations doesn't over the fact that Texas has hugely, vastly more area on which wind farms can reasonably be built from a purely geographic point of view. And Texas also has a substantially lower population density meaning that there is also more middle-of-nowhere in Texas in which they can be built.

            canceled in New Jersey.

            I was specifically responding to the poster who claimed that teh reguhlashuns was the reason Texas has more wind power than California. Slashdot ha

            • I'd remind you that, as the original article states, the canceled projects were *offshore*. I don't think geography was an obstacle there.

              Like New Jersey, California has plenty of land, and plenty of offshore locations, on which to build wind turbines. California's troubles are primarily due to the need for upgrades to the grid. https://calmatters.org/newslet... [calmatters.org] By contrast, Texas has already spent billions upgrading its grid. The Texas grid has its own problems, but all that open land wouldn't be able to s

              • I'd remind you that, as the original article states

                Slashdot has a nested comment system which allows multiple independent conversations which drift around. I have already told you I was responding to a post which was about Texas versus California.

                Like New Jersey, California has plenty of land, and plenty of offshore locations

                Texas has probably a hundred times more suitable land than California and onshore is much cheaper than offshore.

        • by AmiMoJo ( 196126 )

          That map only shows on-shore. If you look at this map you can see that California has even better resources off-shore: https://globalwindatlas.info/e... [globalwindatlas.info]

          Much of it is in shallow areas too, not that we don't have good deep water turbines.

          • True, but on-shore is somewhat cheaper than offshore, and even with that, Texas has onshore as almost good for windspeeds as California's offshore. If you have a fixed amount of money to invest in wind power, you can most likely buy more capacity in Texas versus California, simply because of geography.

            Texas is outrageously good for renewable energy geographically. It has a ton of on-shore space with excellent wind and insolation, and a reasonably low population density.

      • That's because Texans aren't morons. They know how to make money. California sets a renewable energy it can't meet, and thus imports electricity from Arizona and Nevada, and creates a knock-on effect. All that wind is primarily export energy to other states.
    • It really seems like wind is running into the same problem nuclear has. Always over budget, no one wants it in their back yard, over regulation and red tape, and finally nothing completes because about half way through they find out they can't really make enough profit (which should never be a reason for which a necessary public utility is not built).
    • That and the Biden administration would stop promoting the overprinting of dollars which has destroyed these wind projects before they could get off the ground.

    • OK, we get it. You don't like change & you don't like the inconvenience of being considerate towards your fellow human beings. Unfortunately, you're not alone & you're the reason why it's taking so long to mitigate the catastrophes that are coming our way. Let's see how you feel when the price of food goes through the roof because of crop failures due to global heating. You know, Grapes of Wrath style climate refugees knocking at your door when you haven't got enough food for yourselves.
      • Oh, just in case you're one of those a-historical extremists or just didn't pay attention in school, here's a reminder about the American dust bowl but remember that this was for a relatively short period of time & was much more easily mitigated than global heating: https://en.wikipedia.org/wiki/... [wikipedia.org]
    • how do you think they got the right to build in the first place. That doesn't mean you throw caution to the wind (pun intended), but the regulations that were really only there because a handful of rich assholes didn't like their beach view being sullied are gone. What's left are stuff that prevent local fishers from losing their livelihoods and other direct and obvious impacts.

      This notion that everything can be solved if we just do away with regulation needs to stop. Many, no most regulations exist in
      • "Pray, Mr. Babbage, if you put into the machine wrong figures, will the right answers come out?"

        Right back atcha guy. Life isn't binary and somewhere between a libertarian free-for-all and special dispensation being required to take a piss, there's this thing called nuance that allows you to conclude that granting standing to sue against windmills for aesthetics or power lines because scary electromagnetic radiation or endangering the habitat of some bird that magically only lives in the abandoned railroad right of way where the line is supposed to be built is probably not a good idea.

        • Indeed many "environmentalists" thought they could create a perfect world where they could (ab)use the system to prevent their FOTM bad thing from happening, and now find other people doing the exact same to things they like.

          For this I can only recall the immortal words of Nelson Muntz - "ha ha".
    • This. Seriously.

      We just bought a new Tesla (and aren't super thrilled with it TBH, but it'll manage). The sales guy was a complete idiot. I'm sitting in the back seat while he's telling my spouse how the benefit of a Tesla is no maintenance other than replacing a battery in 20 to 30 years, which is cheaper than a required transmission replacement.

      Really? You say that when the MFD touch screen which is required hangs up (definitely didn't buy a Model X after that, went to the Model Y at least)? I

  • by Kernel Kurtz ( 182424 ) on Wednesday November 01, 2023 @09:28PM (#63972982)
    The anti wind power people came out and said it straight up;

    “We have a lot of leverage,” said Frank Coyne, treasurer of Protect Our Coast NJ, which gathered over 500,000 signatures on a petition opposing proposed wind farms. “The objective is to hold them up and make the cost so overwhelming that they’ll go home.”

    Basically right out of the very same playbook of the people opposed to nuclear, pipelines, hydro dams, and other civil infrastructure. And it worked here too.

    https://www.washingtonpost.com... [washingtonpost.com]

    Hard to have sympathy that they get the same as they give. In fact I kind of enjoy it.
    • by AmiMoJo ( 196126 )

      I can at least understand how people could object to on-shore wind near where they live, but there seems to be no real justification for allowing them to block offshore wind.

      • ...but there seems to be no real justification for allowing them to block offshore wind.

        Well, you have a bunch of multi-millionaires that bought VERY expensive beachfront property homes and they don't want their currently pristine ocean views marred by a bunch of wind farms out in the ocean.

        And being that these people are quite wealthy, have a great deal of political pull and can get their way.

      • I can at least understand how people could object to on-shore wind near where they live, but there seems to be no real justification for allowing them to block offshore wind.

        They are taking maximal advantage of all of the legal and due process rights available to them. If enough of these groups have success against enough projects one day they will be able to say, look, wind farms are too slow and too expensive, much like the coordinated effort has done to nuclear for generations. Turnabout is fair play. Makes me laugh.

        • by AmiMoJo ( 196126 )

          It's not about "fair play", it's about what we need.

          As for nuclear, even without the legal issues it's incredibly expensive, that's the problem.

          • It is only expensive in places where people can abuse the legal system to "hold them up and make the cost so overwhelming that they’ll go home". That is purely a western problem. China's cost of nuclear is quite competitive with offshore wind with that barrier not existing for either.
            • by AmiMoJo ( 196126 )

              Hinkley Point C is being built on the site of an existing plant, so the legal issues were very quickly resolved at the start.

              The cost is simply the cost of building and running it.

              • Hinkley Point C is being built on the site of an existing plant, so the legal issues were very quickly resolved at the start.

                I don't know about that, but hopefully the waste of time and money is coming to an end. I would not be surprised if somebody tries again before it opens though. It's all some people know.

                https://world-nuclear-news.org... [world-nuclear-news.org]

                https://www.thetimes.co.uk/art... [thetimes.co.uk]

                I'm not even from the UK. Maybe your news does not cover these things?

  • Primary issue (Score:5, Informative)

    by aaarrrgggh ( 9205 ) on Wednesday November 01, 2023 @09:38PM (#63972990)

    The biggest challenge for them was the service ships for erecting the turbines are booked out three years. That delay will lead to renegotiation of all contracts with significant inflation increases.

    For the amount of wind turbines the US is proposing a couple Jones Act vessles would be a good idea.

    • by gweihir ( 88907 )

      And there we have some actual facts. Not the political insightless bullshit so many people are pushing in this thread. The problem is the unanticipated _success_ of wind farms.

  • a few years ago, Orsted won "most sustainable" company in the world based on their ESG reporting. turns out, they didn't disclose they owned coal plant subsdies in germany.
    • They are basically a merger of the electricity companies in Demark: They own many of our powerplants. Some coal, some wood.. They specialised into making offshore wind farms a few years back and the stock price exploded.
    • Orsted is the world's largest developer of offshore wind power. They have developed about 25% of all the world's offshore wind power.

      And the name comes from the Danish physicists who described the connection between electricity and magnetism.
  • by VeryFluffyBunny ( 5037285 ) on Thursday November 02, 2023 @04:00AM (#63973312)
    Essentially, what this story tells us is that through (wilful?) mismanagement, at least 2 wind farm projects are failing in the USA & the UK. We already know that the GOP & Tory parties are beholden to the fossil fuel lobbies. The thing is, it appears that the Democrat & Labour parties don't seem to be offering any feasible alternatives. This is what creates the conditions for extremist, right-wing populism to grow.
    • Essentially, what this story tells us is that through (wilful?) mismanagement, at least 2 wind farm projects are failing in the USA & the UK. We already know that the GOP & Tory parties are beholden to the fossil fuel lobbies. The thing is, it appears that the Democrat & Labour parties don't seem to be offering any feasible alternatives. This is what creates the conditions for extremist, right-wing populism to grow.

      While I see the same thing happening, what I can't wrap my head around is why, when the "left" offers failing or no solutions, people run screaming towards the "right" whose only "solutions" are "attack, make fun of, own, denigrate." How is that a platform that appeals to anyone? The whole Jenga tower of power looks like a wobbly mess to most of us trying to sort it out, rather than hurl epithets at one another. We know in our hearts that politicians serve the ultra-wealthy first and foremost, but god damn.

  • NJ folks vote next week.

    They really need to vote to Save the Whales, no matter which party they're registered to.

  • Simply put, all existing specialist turbine installation ships that could do the work are already booked to jobs elsewhere.

  • This is a great example of how running enormous budget deficits inhibits other goals. Financing deficits by printing money leads to inflation which makes all the environmental and infrastructure projects interest groups want too expensive.

    It's almost as if life doesn't have solutions so much as tradeoffs. And it's like the crowding out effect economists warn of might be a real thing. Who knew?

    This is not to say that I've missed the irony that environmental protection regulations are being used to kneecap en

  • Just because TFG and the Trump Crime Family fought wind every possible way, and are still doing that, I wonder why it's costing more....

  • No one's going to splash out on innvations if they are in a financial struggle. Times like these require tried-and-tested, efficient and low-cost solutions. I'm glad that someone is still able to see common sense and is not afraid of backtracking on committments if they are not economically viable anymore. We've got to focus on more critical areas of our lives first.

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