Denmark's Orsted Group, a leading name in offshore wind power, has reported a substantial financial setback with impairments totalling €522 million in the second quarter of 2024. The losses stem mainly from challenges and delays in its U.S. operations, particularly the Revolution Wind project—a 704-megawatt offshore wind farm that has now been postponed until 2026 due to soil contamination at an onshore transformer station.
The financial impairments also reflect difficulties with other U.S. projects, including the previously suspended Ocean Wind and the now-abandoned FlagshipOne e-methanol project in Sweden. These developments indicate a broader strategic reassessment by Orsted, driven by rising interest rates in the U.S. and escalating operational hurdles.
Despite a year-on-year increase in EBITDA by 59% to 5.27 billion kroner, Orsted’s share price dropped nearly 8% on the Copenhagen Stock Exchange, signaling investor unease regarding the company's future projects and investment strategy. In response to these challenges, Orsted has lowered its investment plans for 2024 and is shifting its focus towards renewable hydrogen initiatives in Northern Europe, in light of a less dynamic than expected market for green fuels.
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