PROVIDENCE – Construction on the Revolution Wind project has been delayed, which in turn is pushing the offshore wind farm's commercial operational date from next year to 2026, developer Orsted A/S says.
“Despite encouraging progress on our U.S. offshore wind project Revolution Wind, the construction of the onshore substation for the project has been delayed,” Orsted CEO and President Mads Nipper said Thursday in the company's half-year 2024 interim report, adding the delay means the project won't be ready to operate next year, as originally planned.
With the delay, Orsted has booked an impairment loss of $310 million for the second quarter. The Danish company already endured an impairment loss of $221 million when it pulled out of the FlagshipONE e-methanol project, which was planned to be built in Sweden.
“We maintain a strong focus on de-risking project execution and prioritizing growth options with the highest potential for value creation,” Nipper said.
Orsted has a 50% stake in the 704-megawatt Revolution Wind project, located 15 nautical miles southeast of Point Judith in Narragansett. Up to 100 turbines are expected to produce 400 megawatts for Rhode Island and 304 megawatts for Connecticut. In May, Orsted said it had achieved "first steel in the water" as it proceeded with building the foundations of the wind turbines.
Eversource sold its share of Revolution Wind to investment fund Global Infrastructure Partners for $1.1 billion in February, though the company remains a contractor on the project.
It was not immediately clear how Gov. Daniel J. McKee reacted to Thursday's news. Spokesperson Olivia Darocha did not immediately respond to a request for comment.
In a statement, she said, "No action is being taken by the state" in response to the delay. "
The Revolution Wind project remains under construction while Orsted, Eversource and other parties work on the mainland interconnection and remediation site work."
According to a statement from Revolution Wind, the project "continues to progress with more than half of the foundations installed and turbine installation imminent.
"The project has experienced challenges related to the construction of the onshore substation, which has caused a delay in the overall project commercial operations date," the statement continued. "We remain committed to constructing Revolution Wind and investing in new, American energy generation that will meet Connecticut and Rhode Island’s growing electricity needs while creating thousands of jobs and supporting local communities."
The Revolution Wind delay also has no connection to recent turbine damage at the nearby Vineyard Wind project, the company said, noting that the latter is a separate project managed by a different developer.
(ADDS paragraphs 9-11 with statement from Orsted).
