A financial crisis is unfolding in the offshore wind power industry

A financial crisis is unfolding in the offshore wind power industry. Ørsted (the world’s biggest offshore wind developer) is ceasing the development of two offshore wind projects in the United States 🇺🇸 due to supply chain delays, etc., which sent its shares plummeting on Nov. 1st by nearly 20% in Copenhagen 🇩🇰. The costs associated with U.S. offshore wind projects have risen by 57% since 2021 due to inflation in components and labor costs, as well as rising interest rates. The total impairments recognized in Ørsted’s interim financial report for the first nine months of 2023 amount to $4 billion, and the majority of these — $2.8 billion relate to Ocean Wind 1 Project. Just yesterday, BP booked a pre-tax impairment charge of $540 million in the third quarter related to U.S. offshore wind projects. The UK’s 🇬🇧 latest renewables tender was a flop for the industry—not a single offshore wind bid featured in the auction despite the fact that a record number of renewable energy capacity projects were awarded government funding. Last Thursday, Siemens Energy shares in Germany 🇩🇪 crashed 37% due to failing quality controls of their wind turbines. In July, this year, Spanish 🇪🇸 utility Iberdrola SA agreed to pay $ in fines to cancel a wind power contract off the coast of Massachusetts. It’s going to get worse as rare earth element neodymium (Nd), used for permanent magnets is facing future shortages. A megawatt of direct drive wind turbine capacity may require around 1100 pounds of permanent magnets. Scotland 󠁧󠁢󠁳󠁣󠁴󠁿 is expected to lose £60bn including billions from the public purse due to ’underselling’ of leasing rights for offshore wind. Video source: Tucker Carlson Originals Источник: The Paradigm Shift Channel ⏳