Orsted, the world's largest offshore wind farm developer, considers abandoning US projects due to inadequate support amidst rising inflation and supply chain issues.
"We are still upholding a real option to walk away," Orsted CEO Mads Nipper told Bloomberg in an interview in London on Tuesday.
The Biden administration has touted offshore wind farms as an essential component of decarbonizing America's grid, but soaring inflation costs have undermined the sector's growth and left many projects dead in the water. "What we proposed was a grace period, say, so give us three to five years," the CEO said, adding,"Right now, it can't deliver."Orsted's delays were triggered by bureaucratic uncertainties during the previous US administration and were intensified by supply-chain disruptions during the COVID-19 pandemic.
"For a company like ours, where the targeted range of returns is 150 to 300 basis points above our cost of capital, it has essentially made this extremely tough," Nipper said.
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