Orsted Cancels Two Planned NJ Offshore Wind Farms, Citing Costs and Supply Issues

Danish company Orsted canceled two approved wind farms off NJ coast, Ocean Wind 1 and 2, citing high inflation, interest rates, and supply chain issues. The projects were set to receive $1 billion in taxpayer subsidies.

The projects were backed by NJ Gov. Phil Murphy and President Biden's Inflation Reduction Act federal green energy tax credits. Murphy slammed Orsted's decision as "outrageous."

The wind farms were expected to generate energy for 500K homes. Orsted was granted up to $1 billion in NJ tax breaks in July to keep projects going.

Critics argued the turbines threatened marine life, could interfere with radar, and were a bad investment without major subsidies.

Orsted said it's moving forward with other wind projects in NY, CT and RI despite cancelling Ocean Wind 1 and 2. The White House said offshore wind momentum continues despite this setback.