OCEAN CITY, N.J. — Offshore wind power business Orsted is attempting to get out of a $300 million assurance it concurred to pay New Jersey in the occasion it stoppedworking to develop its veryfirst wind farm off the state’s coast.
Last Tuesday, the Danish company ditched its Ocean Wind I and II jobs in southern New Jersey, stating the jobs were no longer economically possible. The business pointedout supply chain concerns, inflation and a failure to gain sufficient federalgovernment tax credits.
The next day, Orsted composed to the New Jersey Board of Public Utilities, stating it was withdrawing from an contract it signed with the state under which it would surrender the cash if it did not construct Ocean Wind I.
The business stated it was doing so because the board had not taken last action to authorize the arrangement.
The BPU stated Monday it authorized an escrow arrangement with Orsted on Sept. 27, and a assurance arrangement on Oct. 11.
In an emailed declaration Monday, Orsted stated, “We withdrew our filings since we are no longer establishing Ocean Wind I and hence are no longer pursuing the tax rewards associated to the task.”
In July, New Jersey authorized a tax break that would haveactually enabled Orsted to keep federal tax credits that it otherwise would have had to return to electrical ratepayers, had the task been constructed.
The business stated it hasactually moved $200 million to an esc