"This is welcome news for the many watermen and residents in Maryland who have made it clear they don’t want foreign-owned offshore wind companies industrializing their coasts," he said in a statement
"These projects are unaffordable, they are ridiculous," Dave Stevenson, the director of the Center for Energy Competitiveness at Delaware-based free market think tank Caesar Rodney Institute, told Fox News Digital in an interview. "The question really does become, in light of these disruptions and price increases, why shouldn't we expect more?"
Multinational energy developer Orsted unexpectedly withdrew from agreements with the State of Maryland to develop two offshore wind projects, citing worsening economic conditions.
Orsted announced that it had pulled out of orders which the Maryland Public Service Commission (PSC) issued years ago greenlighting the so-called Skipjack Wind 1 and Skipjack Wind 2 projects, and selecting the projects for a 20-year Offshore Renewable Energy Credit (OREC). Maryland Democrats repeatedly pointed to the Skipjack Wind development as a key part of the state's aggressive decarbonization agenda.
"Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities," David Hardy, Orsted's group executive vice president and CEO of its Americas division, said Thursday in a statement.
"As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available," he continued.
Hardy added that the decision was made in light of "challenging economic circumstances." According to Orsted, the ORECs set forth under the company's agreement with the state are no longer commercially viable as a result of market conditions, including inflation, high interest rates and supply chain constraints.
The developer, though, hasn't canceled the project altogether and will continue to advance its development and permitting, additionally submitting an up-to-date Construction and Operations Plan to the U.S. Department of the Interior. Orsted said the move allows it to reposition Skipjack Wind for future offtake opportunities.
"Governor Moore is disappointed by the news of Ørsted’s repositioning of the Skipjack Wind project, an effort that has the capacity to impact the lives of so many Marylanders," Carter Elliott, a spokesperson for Democratic Maryland Gov. Wes Moore, told Fox News Digital in an email.
"However, he will continue to work with legislators, Maryland’s federal partners, offshore wind developers, and advocates that see Maryland’s potential in order to build a system to help Maryland reach the state’s goal of 100% clean energy by 2035," Elliott added. "If this is going to be Maryland's decade, we must continue to push forward to reach the state's ambitious climate goals, and the governor is as committed as ever to doing just that."
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"These projects are unaffordable, they are ridiculous," Dave Stevenson, the director of the Center for Energy Competitiveness at Delaware-based free market think tank Caesar Rodney Institute, told Fox News Digital in an interview. "The question really does become, in light of these disruptions and price increases, why shouldn't we expect more?"
Multinational energy developer Orsted unexpectedly withdrew from agreements with the State of Maryland to develop two offshore wind projects, citing worsening economic conditions.
Orsted announced that it had pulled out of orders which the Maryland Public Service Commission (PSC) issued years ago greenlighting the so-called Skipjack Wind 1 and Skipjack Wind 2 projects, and selecting the projects for a 20-year Offshore Renewable Energy Credit (OREC). Maryland Democrats repeatedly pointed to the Skipjack Wind development as a key part of the state's aggressive decarbonization agenda.
"Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities," David Hardy, Orsted's group executive vice president and CEO of its Americas division, said Thursday in a statement.
"As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available," he continued.
Hardy added that the decision was made in light of "challenging economic circumstances." According to Orsted, the ORECs set forth under the company's agreement with the state are no longer commercially viable as a result of market conditions, including inflation, high interest rates and supply chain constraints.
The developer, though, hasn't canceled the project altogether and will continue to advance its development and permitting, additionally submitting an up-to-date Construction and Operations Plan to the U.S. Department of the Interior. Orsted said the move allows it to reposition Skipjack Wind for future offtake opportunities.
"Governor Moore is disappointed by the news of Ørsted’s repositioning of the Skipjack Wind project, an effort that has the capacity to impact the lives of so many Marylanders," Carter Elliott, a spokesperson for Democratic Maryland Gov. Wes Moore, told Fox News Digital in an email.
"However, he will continue to work with legislators, Maryland’s federal partners, offshore wind developers, and advocates that see Maryland’s potential in order to build a system to help Maryland reach the state’s goal of 100% clean energy by 2035," Elliott added. "If this is going to be Maryland's decade, we must continue to push forward to reach the state's ambitious climate goals, and the governor is as committed as ever to doing just that."
Energy developer delivers major blow to blue state's climate agenda by canceling offshore wind contracts
A major energy developer is pulling out of contracts it entered into with the State of Maryland to build two large offshore wind farms in a blow to Democrats' green energy goals.
