November 28, 2023 — It has been a hard year for Ørsted. High interest rates and supply chain bottlenecks have rocked the world’s largest offshore wind developer.
Earlier this month, Ørsted wrote down the value of its U.S. portfolio by $4 billion after canceling two projects off New Jersey. The company’s stock price has lost more than half its value since the start of the year, and it recently announced a reshuffling of its management team, with the departure of the company’s chief financial officer and chief operations officer.
David Hardy is one executive who has weathered the storm. He has led the Danish-based company’s operations in the U.S. since 2020. Hardy sat down for an interview Monday with E&E News at a critical time for the company.
Ørsted is preparing to submit a new bid for Sunrise Wind in New York after regulators there rejected the company’s request to charge consumers more for the 924-megawatt project’s electricity. In New Jersey, the company is bracing for a fight over $300 million in performance guarantees related to its Ocean Wind I project. And its partner, Eversource Energy, is looking to sell its stake in three offshore wind projects.
If that wasn’t enough, Ørsted has also been in talks with the White House over implementation of the Inflation Reduction Act. Hardy has called on the administration to revise its rules governing a domestic content bonus in a bid to make it easier for offshore wind developers to qualify for tax credits.
Last week, Ørsted announced the installation of the first turbine for South Fork Wind, a 132-MW project serving New York. Hardy said it could begin generating power by the end of this week. Ørsted has also begun work for Revolution Wind, a 704-MW project serving Connecticut and Rhode Island.
The conversation has been lightly edited for clarity.
It’s obviously been a difficult year. What lessons do you take from South Fork and Revolution moving forward — not just for Ørsted but for offshore wind in the U.S.?
Well, first off, these to me are bright spots in the industry right now. It’s easy to kind of be focused on the negatives. But here’s two projects that are in construction and moving along and, between the two of them, are over 800 megawatts of offshore wind, which will be powering over 400,000 homes in New England and New York with clean power. They’re also projects that are the foundation for the supply chain, the foundation for the operation and maintenance hub, the foundation for current and future union jobs, and all kinds of other things that the industry promised. And so I think our perseverance and commitment to getting these projects built says a lot. They’re still not amazing financial return projects, but we’ve been able to work through all the challenges in the industry … to take a positive final investment decision and progress these projects.