Ørsted records $77 M impairment on Revolution Wind
Ørsted faces lasting financial effects from the federal stop work order, but the company says construction and delivery remain on schedule.
Image for illustrative purposes
USA, Rhode Island: Ørsted has reported a $76.9 M impairment on its Revolution Wind project, following a month-long stop work order issued by federal regulators earlier this year. The Danish renewable energy company said the order, linked to national security concerns, caused significant financial disruption despite construction now being back on track.
Revolution Wind, located 15 nautical miles south of Rhode Island, is co-developed by Ørsted and partners and is 80 % complete. The 704 MW project is designed to supply power to around 350,000 homes in Rhode Island and Connecticut by 2026.
Ørsted reported a net loss of $261.8 M for the third quarter, compared to a $795 M profit in the same period last year. The decline stems largely from depreciating values across its US offshore wind portfolio amid rising tariffs and federal opposition to wind development.
A federal judge in Washington, DC lifted the stop work order in late September, allowing work to resume, while a separate legal challenge from state attorneys general remains pending.
Despite the setback, Ørsted’s CEO and president, Rasmus Errboe, reaffirmed the company’s commitment to completing the project. He said Ørsted has strengthened its finances through a $9.4 B rights issue and the sale of a 50 % stake in the UK’s Hornsea 3 wind farm for $6. B.
Ørsted expects full-year earnings before interest, taxes, depreciation and amortisation to remain between $3.7 B and $4.2 B.
Source: Rhode Island Current
#energy policy#offshore wind#Ørsted#project finance#Rasmus Errboe#renewable energy#Revolution Wind#United States