Orsted has cancelled the offtake deal for its combined 966MW Skipjack Wind 1 and 2 development off the Delmarva peninsula as it seeks to rebid.
Following consultation with the State of Maryland, Orsted has withdrawn from the Maryland Public Service Commission Orders approving the Skipjack projects.
Orsted intends to continue advancing development and permitting for the combined development, including submission of its updated Construction and Operations Plan to BOEM.
This action follows an extensive review of the orders. The payment amounts for ORECs set forth in the orders are no longer commercially viable because of today’s challenging market conditions, including inflation, high interest rates and supply chain constraints.
“Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that is highly supportive of offshore wind, for future offtake opportunities,” said group executive vice president and chief executive Americas at Orsted David Hardy.
“As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available. We will continue to advance Skipjack Wind’s development milestones, including its Construction and Operations Plan.
“We are grateful to Governor Moore, the Maryland Public Service Commission and the State of Maryland for their steadfast partnership and support as we have worked diligently to develop Skipjack Wind under challenging economic circumstances,” Hardy continued.
“We fully support the state’s leadership as they pursue their ambitious offshore wind goal. We also thank the State of Delaware for its collaborative approach to supporting Skipjack Wind’s development.”