Ørsted continues pull-back from offshore wind developments

Denmark-based energy major Ørsted has abandoned its previous plan to bid for offshore wind developments in Norway in partnership with Fred Olsen Seawind and Hafslund Eco.

Olsen family’s investment firm, Bonheur, and parent company of Fred Olsen Seawind, said in an Oslo Stock Exchange filing that “Ørsted has informed us that, due to a prioritization of investments in the portfolio, it will withdraw from pursuing participation in offshore wind developments in Norway, and therefore its participation in the partnership will discontinue”.

The tie-up between Ørsted, Fred Olsen Renewables and Hafslund had begun in June 2021 with the formation of the Blåvinge consortium. It targeted licenses in both areas appointed by the Norwegian government, for bottom-fixed offshore wind in the Sørlige Nordsjø II area and floating wind in the Utsira Nord.

Bonheur said the remaining duo, Hafslund and Fred Olsen Seawind, would continue their partnership and would press ahead with the Utsira Nord project, but that the pair were not in a position to pursue Sørlige Nordsjø II.

Only a couple of weeks ago Ørsted cancelled two offshore wind projects in the US – Ocean Wind 1 and 2 off the coast of southern New Jersey. The company cited $5.6bn in related losses as costs had soared owing to rising interest rates and supply constraints. The cancellations remain a matter of disagreement between Ørsted and New Jersey State.