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.