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Ørsted has announced its plans to reposition Skipjack Wind, a 966 MW project off the Delmarva peninsula in the US, for future offtake opportunities.
After consultation with Maryland, Ørsted withdrew from Maryland Public Service Commission orders for Skipjack 1 and 2. The company will continue developing the project, including submitting an updated Construction and Operations Plan to BOEM.
This decision comes after an extensive review. Payment amounts for ORECs in the orders are no longer viable due to current market conditions, including inflation, high-interest rates, and supply chain constraints.
“Today’s announcement affirms our commitment to developing value creating projects and represents an opportunity to reposition Skipjack Wind, located in a strategically valuable federal lease area and with a state that’s highly supportive of offshore wind, for future offtake opportunities,” said David Hardy, Executive Vice President and CEO of Region Americas at Ørsted. “As we explore the best path forward for Skipjack Wind, we anticipate several opportunities and will evaluate each as it becomes available. We’ll continue to advance Skipjack Wind’s development milestones, including its construction and operations plan.”
“We’re grateful to Governor Moore, the Maryland Public Service Commission and the State of Maryland for their steadfast partnership and support as we have worked diligently to develop Skipjack Wind under challenging economic circumstances,” Hardy added. “We fully support the state’s leadership as they pursue their ambitious offshore wind goal. We also thank the State of Delaware for its collaborative approach to supporting Skipjack Wind’s development.”
