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Orsted Warns of Potential Write-Offs for Revolution Wind Project

Delayed Construction and Permitting Issues Impacting Offshore Wind Farm

Key Points:

* Danish renewable energy giant Ørsted may write off up to 212 million dollars for the Revolution Wind project. * The project's start date has been pushed back due to permitting issues. * Ørsted booked 39 billion Danish crowns (575 million dollars) in impairment losses related to the project.

Ørsted, a leading global offshore wind developer, has issued a warning regarding potential write-offs for its Revolution Wind project. The project, located off the coast of Rhode Island, has encountered construction delays and permitting issues.

The company's net income for the first half of 2023 was 931 million dollars, down from 1.372 billion dollars in the same period last year. Ørsted attributed the decline in part to the impairment losses related to Revolution Wind.

The project's initial construction timeline and costs have been revised, with the start date pushed back. Ørsted is working with regulators to resolve the permitting issues and secure the necessary approvals.

The Revolution Wind project is a joint venture between Ørsted and Eversource Energy. The project is expected to provide clean energy to over 400,000 homes in Rhode Island and Connecticut. Despite the challenges, Ørsted remains committed to the project and its long-term goals in offshore wind.

The delay and potential write-offs highlight the challenges and complexities of developing large-scale offshore wind projects. However, the project remains significant, as it is one of the largest offshore wind farms in the United States and is part of a growing industry that is critical to the transition to clean energy.

Ørsted's warning underscores the importance of thorough planning, permitting, and collaboration in the execution of offshore wind projects. The company's commitment to resolving the issues and moving the project forward demonstrates its dedication to the development of renewable energy.