Ørsted admits costs of building major projects in the US are spiralling
The owner of the UK’s biggest offshore wind farms has lost a fifth of its value after admitting that the costs of building major projects in the US was spiralling.
Danish giant Ørsted, which operates the Hornsea 1 and 2 wind farms off the coast of Yorkshire, said it was facing a hit of 16 billion crowns (£1.9bn) from cost overruns on projects in America.
Supply chain delays, a higher cost of borrowing due to rising interest rates and trouble obtaining tax credits have left it shouldering much higher costs on planned offshore wind farms in New Jersey, New York and Rhode Island.
On a call with reporters, Mads Nipper, Ørsted’s chief executive said the situation was “severe”.