Home Energy Orsted says job cuts won’t affect Revolution Wind project

Orsted says job cuts won’t affect Revolution Wind project

By

Katie Castellani

-

02/07/2024

Offshore wind — THE WORLD'S LARGEST offshore wind developer, Orsted A/S, announced plans Wednesday to cut jobs and leave offshore wind markets after facing “substantial challenges” throughout 2023. / ASSOCIATED FILE PHOTO/DAVID GOLDMAN

PROVIDENCE – The world’s largest offshore wind developer, Orsted A/S, on Wednesday said global plans to cut jobs and leave offshore wind markets won’t affect Rhode Island or the Revolution Wind project. The Danish renewables company plans to cut 600 to 800 jobs worldwide and depart several offshore wind markets, including Norway, Spain and Portugal

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PROVIDENCE – The world’s largest offshore wind developer, Orsted A/S, on Wednesday said global plans to cut jobs and leave offshore wind markets won't affect Rhode Island or the Revolution Wind project. The Danish renewables company plans to cut 600 to 800 jobs worldwide and depart several offshore wind markets, including Norway, Spain and Portugal after facing “substantial challenges” throughout 2023. Additionally, Orsted will pause dividends for fiscal years 2023 to 2025. These plans, however, will have no effect on Orsted’s Northeast projects, Orsted North America spokesperson Meaghan Wims told Providence Business News. Orsted has a 50% stake in the 704-megawatt Revolution Wind project, which will be located 15 nautical miles southeast of Point Judith in Narragansett, PBN previously reported. Onshore construction of Revolution Wind is underway and the project is expected to be operating in 2025, Wims said. When completed, the project will deliver 400 megawatts of wind power to customers in Rhode Island and 304 megawatts to customers in Connecticut, powering more than 350,000 homes in total. “In order to improve our competitiveness, ensure value creation, and ensure our ability to attract capital to the renewable build-out, we will make Ørsted a leaner and more efficient company,” Orsted CEO Mads Nipper said in a statement, which also mentioned the challenges the company faced in 2023. In the past year, the company canceled two major offshore wind projects in the U.S. and its stock price has fallen more than 40% as supply chain disruptions and interest-rate increases took a toll on the wind energy industry, according to a CNBC report. Further, Nipper said the company’s financials had been “adversely affected” by setbacks to U.S. offshore projects in the third quarter of 2023, CNBC reported. In November 2023, Orsted announced it was canceling its Ocean Wind I and II projects off the coast of southern New Jersey, citing supply chain issues and rising interest rates, PBN previously reported. Now Orsted said it hopes to reach 35 to 38 gigawatts of power generation capacity by 2030, marking a decrease from its previous goal of 50 gigawatts. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.