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Orsted Sets Out Cost-Saving Plan After U.S. Wind Projects Cancellation

February 7, 2024 —  Orsted the struggling European wind-energy giant, said it will cut costs, pause dividend payments over several years, sell assets and refocus business priorities as it tries to right itself from a costly move into the U.S. offshore wind market.

Orsted, which transformed itself in recent years from what was Denmark’s small state oil company into a global giant in wind energy development, has recently hit major headwinds as it pushed aggressively to expand into new markets, particularly in a push in the U.S.

After betting big on offshore wind development on the U.S. East Coast, it has pared back dramatically, and seen its stock-market valuation—at one point eclipsing that of some of its more traditional oil and natural gas peers—crater.

It has struggled with supply-chain bottlenecks in the U.S., higher interest rates and trouble getting tax credits there. Late last year, it said it would pull out of two high-profile wind projects off the coast of New Jersey due to spiraling costs.

Read the full article at the Wall Street Journal

MARYLAND: House leaders prepping legislation to boost Maryland offshore wind

February 7, 2024 — Stung by news that one of the two companies that was planning to install wind energy turbines off the coast of Ocean City is reassessing its projects, House leaders are drafting legislation designed to shore up the state’s offshore wind industry.

House Economic Matters Chair C.T. Wilson (D-Charles) and Vice Chair Brian M. Crosby (D-St. Mary’s) will introduce a bill later this week to buttress USWind, the one company fully committed to building wind installations in federal waters near Maryland, and encourage more players to enter the marketplace.

“If you want to be a good partner and move in the direction that Maryland wants to move in, we want to help,” Wilson said in an interview Tuesday.

The state has ambitious goals to generate 8.5 gigawatts of electricity, enough to power almost 3 million homes, from offshore wind sources by 2031. But late last month, Ørsted, one of two companies that had won leases to build wind farms off the coast, announced it was “repositioning” its plans, pulling out of its agreement with the state and seeking alternative financing.

Although Ørsted is the biggest developer of offshore wind in the world, and was an early entrant into the still developing U.S. market, some of its American projects have struggled of late, due in part to inflation and worldwide supply chain issues for the industry. Last fall, the company abandoned two proposed developments off the New Jersey coast altogether.

That was a warning signal to Wilson, whose committee moved complicated legislation last year to expand the offshore wind industry in Maryland.

“We saw the writing on the wall when Ørsted pulled out of the New Jersey projects,” he said.

Read the full article at Maryland Matters

BOEM Seeks Input on Draft Environmental Analysis for Additional Site Assessment Activities on Proposed Wind Energy Project Offshore Massachusetts

February 3, 2024 — The following was released by BOEM:

On Feb. 2, the Bureau of Ocean Energy Management (BOEM) will publish in the Federal Register the “Notice of Availability (NOA) of a Draft Environmental Assessment (Draft EA) for Additional Site Assessment Activities on Beacon Wind, LLC’s Renewable Energy Lease OCS-A 0520,” opening a 30-day public comment period that ends at 11:59 p.m. ET on Mar. 4, 2024. BOEM invites public comment on the Draft EA for additional site assessment plan (SAP) activities in the Beacon Wind lease area offshore Massachusetts.

The Draft EA analyzes the potential environmental impacts of proposed site assessment activities which consist of 35 deployments and removals of a single suction bucket foundation at 26 locations within the lease area to gather information to support the engineering design of wind turbine and offshore substation foundations that would potentially be installed within the lease area for a future Beacon Wind project.

On Nov. 7, 2023, BOEM published a “Notice of Intent to Prepare an Environmental Assessment for Additional Site Assessment Activities on Beacon Wind, LLC’s Renewable Energy Lease OCS-A 0520.” The amended SAP and Draft EA can be found on BOEM’s webpage.

Virtual Public Meetings 

Two virtual public meetings are proposed during the 30-day comment period for the Draft EA. All times are Eastern:

  • Friday, February 23, 2024; 1 p.m.
  • Wednesday, February 28, 2024; 5 p.m.

How to Submit Comments 

  • Through the regulations.gov web portal: Navigate to http://www.regulations.gov and search for Docket No. BOEM-2024-0006 to submit public comments and view supporting and related materials available for this notice.  Click on the “Comment” button below the document link.  Enter your information and comment, then click “Submit Comment”; or
  • By U.S. Postal Service or other delivery service: Send your comments and information to the following address: Bureau of Ocean Energy Management, Office of Renewable Energy Programs, 45600 Woodland Road, Mail Stop VAM-OREP, Sterling, VA 20166.

BOEM seeks comments on important resources and issues, impact-producing factors, and potential mitigating measures analyzed in the Draft EA. The public comments will help inform BOEM’s decision on whether to approve the site assessment plan amendment. Following the comment period, BOEM will review the comments received to include information for consideration in the Beacon Wind Final EA.

More information, including registration for the virtual public meetings, can be found on BOEM’s website.

Dominion gets Virginia offshore wind approval

February 1, 2024 — Dominion Energy announced Jan. 30 received the last two major federal approvals it need to start construction of the 2.6-gigawatt Coastal Virginia Offshore Wind project, with completion anticipated in late 2026.

The Bureau of Ocean Energy Management’s final approval of CVOW’s Construction and Operations Plan clears the way for starting work on what would be the largest offshore wind project in U.S. waters with 176 turbines across 113,000 acres of leased bottom. It comes after many months of  inflation, supply chain issues and other challenges forced other wind developers to withdraw from or re-bid project commitments  with other East Coast states.

“Virginia is leading the way for offshore wind as we near the start of offshore construction for Coastal Virginia Offshore Wind,” Bob Blue, Dominion Energy’s chair, president, and chief executive officer said in announcing the permit. “These regulatory approvals keep CVOW on time and on budget as we focus on our mission of providing customers with reliable, affordable and increasingly clean energy.”

Read the full article at Workboat

New wind strategy advanced to protect right whales

February 1, 2024 — The federal government announced a new strategy aimed at protecting the critically endangered North Atlantic right whale while the development of offshore wind ramps up.

The 78-page strategy from the Bureau of Ocean Energy Management (BOEM) and NOAA Fisheries, released Thursday, Jan. 25, lays out ways to continue evaluating and mitigating the potential effects on the whales and their habitat.

North Atlantic right whales are an endangered species, with an estimated 360 individuals remaining, a population that has been reported to be on the decline. That decline has been felt locally, as a juvenile right whale was found dead in Edgartown on Monday.

While NOAA reports that entanglement in fishing gear and ship strikes are the leading cause of death for the whales, the agency says that ocean noise is also a threat to the species, and sources can include energy exploration and development.

Read the full article at MV Times

Feds’ plan aims to help whales and offshore wind farms coexist

January 31, 2024 — In the midst of the critical North Atlantic Right Whale calving season along the East Coast, the U.S. Bureau of Ocean Energy Management and the National Oceanic and Atmospheric Administration (NOAA) unveiled a strategy to navigate the intersection of offshore wind projects and the endangered species’ habitat.

Marine mammal advocates welcomed a final joint federal strategy to save the whales and develop offshore wind where the two might collide. It stresses teamwork, research, strict monitoring and mitigation. That includes also avoiding leasing in areas where major impacts to North Atlantic Right Whales may occur.

“We believe that we can recover North Atlantic Right Whales and support responsibly developed offshore wind,” said Gib Brogan of Oceana. “But it puts a burden on the federal government to make sure that that balance happens.”

Read the full article at NJ Spotlight News

NEW JERSEY: Offshore wind foes welcome push to site projects further off NJ coast

January 31, 2024 — One of the more vocal opponents of the state’s offshore wind program is praising last week’s decision to build two wind farms because, at more than 40 miles off the Jersey coast, they will be out of sight.

“We think it is a step in the right direction,’’ said Bob Stern, president of Save Long Beach Island, a group that had gone to court to block the initial offshore wind projects nearer to the coast, referring to the two new projects approved by the state Board of Public Utilities.

Leading Light Wind and Attentive Energy got the go-ahead to build a total of 3,742 megawatts of offshore wind capacity, enough to power 1.8 million homes when the wind turbines become operational in 2030 or 2031.

Read the full article at New Jersey Spotlight News

VIRGINIA: Dominion wind project gets final 2 permits

January 31, 2024 — Federal regulators have issued the last two major approvals needed for Dominion Energy to begin construction of the largest U.S. offshore wind farm.

The facility, 25 miles in the Atlantic off the Virginia Beach Oceanfront, will have 176 turbines capable of generating enough electricity to power up to 660,000 homes.

The more than $9 billion project is due to come on line in 2026.

The U.S. Bureau of Ocean Energy Management issued its final approval of Dominion’s construction and operations plan. This is a detailed plan for building and operating an offshore facility that the bureau reviews for its environmental impact and technical feasibility.

Read the full article at the Richmond Times-Dispatch

Cape residents air objections to current plans for offshore wind

January 30, 2024 — Cape Cod residents who object to the offshore wind plans for Massachusetts — in whole or in part — met for a four-hour conference Saturday in Hyannis.

More than 200 people turned out for the event, organized by Barnstable residents’ group Save Greater Dowses Beach and others.

Susanne Conley, chair of the Dowses Beach group, said the conference aimed to give voice to people who have been derided for their concerns about offshore wind turbines and the infrastructure they require.

“We have pitched a large tent here,” she said. “We do not think alike about ocean wind farms, but we share this: We have been dismissed, ridiculed, gaslighted by ocean wind developers and the federal and state regulatory agencies and officials that, in my opinion, are giving them a much, much too easy pass.”

Speakers pointed to potential harm to wildlife and fisheries, and to the difficulty of rescuing mariners from a storm if turbines are nearby.

Read the full article at nhpr

Ørsted Cancels Maryland Power Agreement as it Reviews US Offshore Wind Plan

January 29, 2024 — Ørsted is continuing with its efforts to realign its U.S. offshore wind portfolio while also taking steps to emphasize that it remains committed to the market and sees future opportunities. The U.S. division of the Danish offshore developer however announced that it has walked away from existing power agreements in New York and now Maryland positioning the projects for future offtake opportunities.

Plans for Skipjack Wind, a two-phase project with the potential for 966 MW of energy, were setback as the company reported it will withdraw from existing power agreements with the Maryland Public Service Commission agreed to in 2020 and 2021. The company said it determined that the payment amounts outlined in the orders “are no longer commercially viable,” while again citing market conditions, including inflation, high interest rates, and supply chain constraints.

According to Ørsted, the decision to withdraw from the orders with Maryland will “reposition Skipjack Wind for future offtake opportunities.” It is unclear then they might be able to rebid these projects.

Unlike its decision in November 2023 to end two New Jersey offshore wind projects, Ørsted intends to continue advancing development and permitting for the two phases of Skipjack. The company is submitting an updated Construction and Operations Plan for the wind farms to the Bureau of Ocean Energy Management (BOEM) for review.

Read the full article at the Maritime Executive