{"id":278429,"date":"2023-09-12T14:01:49","date_gmt":"2023-09-12T12:01:49","guid":{"rendered":"https:\/\/climatescience.press\/?p=278429"},"modified":"2023-09-12T14:02:04","modified_gmt":"2023-09-12T12:02:04","slug":"offshore-wind-encounters-financial-turbulence","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=278429","title":{"rendered":"Offshore wind encounters financial turbulence"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

\u00a0From CFACT<\/a><\/p>\n\n\n\n

By\u00a0Bonner Cohen, Ph. D.<\/a><\/p>\n\n\n\n

\"\"
Vertical axis wind turbines generator farm for renewable sustainable and alternative energy production along coast baltic sea near Denmark. Eco power, ecology.<\/figcaption><\/figure>\n\n\n\n

Ambitious plans by the ruling political class, in league with well-connected purveyors of renewable energy, to erect industrial-scale wind-power facilities off the coasts of the United States are running into the harsh commercial realities of an unfavorable economic environment.<\/p>\n\n\n\n

The Biden administration\u2019s lofty goal of having 30 gigawatts of offshore wind \u201ccapacity\u201d by 2030, from less than 50 megawatts today, is looking increasingly like a bridge too far, despite mammoth subsidies contained in last year\u2019s ill-named Inflation Reduction Act (IRA). The IRA\u2019s goodies for wind developers, coupled with a federal regulatory bureaucracy eager to greenlight offshore wind projects \u2013 no matter what the risk posed to marine life \u2013 created a temptation the climate cartel could not resist.<\/p>\n\n\n\n

One of the climate cartel\u2019s most prominent members is Orsted, a Danish company that \u2013 in keeping with the times \u2013 transformed itself from an oil and gas producer to the world\u2019s largest offshore wind-power developer. Orsted set its sights on wind projects off the coasts of Connecticut, New York, and New Jersey \u2013 bagging contracts in 2018 and 2019 \u2013 well before the enactment of the IRA, whose generous subsidies made such projects even more enticing. What could go wrong?<\/p>\n\n\n\n

Just about everything.<\/p>\n\n\n\n

\u201cOffshore wind projects are becoming a prime casualty of the shift in financial markets away from the old world of smooth supply chains, low inflation, and free money,\u201d The Wall Street Journal<\/em> reported (Sept. 8). Inflation has driven up the cost of materials; rising interest rates have driven up the cost of borrowing; and permitting delays (not even friendly bureaucracies work efficiently) have combined to toss overboard Orsted\u2019s once rosy calculations. Now, the company says that not even the IRA\u2019s lavish tax breaks are enough to make its projects profitable. It wants U.S. taxpayers to fork over more money to keep the company\u2019s dream alive. And if it does not get its way, it will abandon its U.S. projects altogether.<\/p>\n\n\n\n

Orsted is not alone. The Journal pointed out two of its competitors, Shell and Avangrid, face multi-million-dollar fines for calling it quits on offshore wind farms in Massachusetts. The reason? Rising costs mean they cannot make a go of it. \u201cThere is trouble further up the supply chain, too,\u201d the Journal<\/em> added. \u201cSiemens Gamesa and Vestas, which together make roughly 80% of all turbine blades and nacelles for projects outside China, are losing money.\u201d<\/p>\n\n\n\n

Not Living Up to Expectations<\/strong><\/p>\n\n\n\n

At first glance, offshore wind would appear to offer certain advantages. First and foremost, offshore wind blows with greater reliability than onshore wind. This makes them less inefficient than their onshore counterparts. But financing the construction and operation of hundreds of gigantic offshore wind turbines and transmitting the electricity they generate onshore where needed runs into real money.<\/p>\n\n\n\n

Offshore wind projects take longer to build, have higher upfront costs (financed by borrowing), and have much higher maintenance costs than either onshore wind farms or solar arrays. Seaborne wind turbines frequently break down, and their power-generating efficiency starts declining the day they go into operation, with the decline accelerating each year. Replacing offshore wind turbines, which can soar over 700 feet above the ocean\u2019s surface, is hugely expensive, and the costs are passed on to ratepayers. As more and more ocean-front communities sue to stop wind projects, developers find themselves saddled with the added expense of litigation.<\/p>\n\n\n\n

Word is getting out that there may not be a pot of gold at the end of this green rainbow. The Biden administration recently held an auction for leases in the Gulf of Mexico, and wind-power developers were invited to submit bids. The auction came and went, without any bids being submitted.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Author<\/h2>\n\n\n
\n
\"\"<\/figure>\n<\/div>\n\n\n


Bonner Cohen, Ph. D.<\/a><\/p>\n\n\n\n

Bonner R. Cohen, Ph. D., is a senior policy analyst with CFACT, where he focuses on natural resources, energy, property rights, and geopolitical developments. <\/p>\n\n\n\n

Articles by Dr. Cohen have appeared in The Wall Street Journal, Forbes, Investor\u2019s Busines Daily, The New York Post, The Washington Examiner, The Washington Times, The Hill, The Epoch Times, The Philadelphia Inquirer, The Atlanta Journal-Constitution, The Miami Herald, and dozens of other newspapers around the country. <\/p>\n\n\n\n

He has been interviewed on Fox News, Fox Business Network, CNN, NBC News, NPR, BBC, BBC Worldwide Television, N24 (German-language news network), and scores of radio stations in the U.S. and Canada. <\/p>\n\n\n\n

He has testified before the U.S. Senate Energy and Natural Resources Committee, the U.S. Senate Environment and Public Works Committee, the U.S. House Judiciary Committee, and the U.S. House Natural Resources Committee. <\/p>\n\n\n\n

Dr. Cohen has addressed conferences in the United States, United Kingdom, Germany, and Bangladesh. <\/p>\n\n\n\n

He has a B.A. from the University of Georgia and a Ph. D. \u2013 summa cum laude \u2013 from the University of Munich.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ambitious plans by the ruling political class, in league with well-connected purveyors of renewable energy, to erect industrial-scale wind-power facilities off the coasts of the United States are running into the harsh commercial realities of an unfavorable economic environment.<\/p>\n","protected":false},"author":121246920,"featured_media":278435,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691822531,691818057,691818181,691818864],"class_list":["post-278429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-financial-turbulence","tag-off-shore-windpark","tag-renewable-energy","tag-the-biden-administration","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/09\/00f9ec8464aaec85a4d1d021a05de53542.jpg?fit=1600%2C799&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1aqN","jetpack-related-posts":[{"id":246962,"url":"https:\/\/climatescience.press\/?p=246962","url_meta":{"origin":278429,"position":0},"title":"Giant UK offshore wind farm \u2018at risk without government support\u2019","author":"uwe.roland.gross","date":"03\/05\/2023","format":false,"excerpt":"\u201cThe government is encouraging investment in renewable generation including through \u00a330 billion to support the green industrial revolution, and just last year our renewable energy auctions contracted record amounts of clean energy.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-214.png?fit=1200%2C630&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-214.png?fit=1200%2C630&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-214.png?fit=1200%2C630&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-214.png?fit=1200%2C630&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/03\/image-214.png?fit=1200%2C630&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":264362,"url":"https:\/\/climatescience.press\/?p=264362","url_meta":{"origin":278429,"position":1},"title":"Record Renewables Growth Fails To Cut Global Fossil Fuel Share","author":"uwe.roland.gross","date":"06\/28\/2023","format":false,"excerpt":"Record increases in solar and wind installations in 2022 failed to cut into the massive 82% share of fossil fuels in global energy consumption amid turbulent energy markets and energy security concerns, the annual Statistical Review of World Energy showed on Monday.","rel":"","context":"In \"CO2\"","block_context":{"text":"CO2","link":"https:\/\/climatescience.press\/?tag=co2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0f3b0dbf159a2eca87073737d01ed4120.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0f3b0dbf159a2eca87073737d01ed4120.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0f3b0dbf159a2eca87073737d01ed4120.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0f3b0dbf159a2eca87073737d01ed4120.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0f3b0dbf159a2eca87073737d01ed4120.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":286289,"url":"https:\/\/climatescience.press\/?p=286289","url_meta":{"origin":278429,"position":2},"title":"\u00d8rsted Abandons New Jersey Wind Projects","author":"uwe.roland.gross","date":"11\/03\/2023","format":false,"excerpt":"Offshore wind developer \u00d8rsted said it is pulling out of its Ocean Wind 1 and Ocean Wind 2 projects off New Jersey, citing escalated financial difficulties and supply chain issues.\u00a0 \u201c\u00d8rsted has decided to cease the development of Ocean Wind 1 and 2,\u201d said the company in its statement. The\u2026","rel":"","context":"In \"\u00d8rsted\"","block_context":{"text":"\u00d8rsted","link":"https:\/\/climatescience.press\/?tag=orsted-2"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0Screenshot-2023-11-03-111148.png?fit=1182%2C705&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0Screenshot-2023-11-03-111148.png?fit=1182%2C705&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0Screenshot-2023-11-03-111148.png?fit=1182%2C705&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0Screenshot-2023-11-03-111148.png?fit=1182%2C705&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/0Screenshot-2023-11-03-111148.png?fit=1182%2C705&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":285815,"url":"https:\/\/climatescience.press\/?p=285815","url_meta":{"origin":278429,"position":3},"title":"Siemens Energy\u2019s Green Dream Meets Reality: Renewables in Distress","author":"uwe.roland.gross","date":"10\/30\/2023","format":false,"excerpt":"Things are so bad Olaf Scholz, Chancellor of Germany has even said Siemens Energy is \u201cvery important\u201d.\u00a0 Apparently talks are \u201cintensive\u201d, which presumably means the company is on death\u2019s door and the German government is being asked to help save it. From Watts Up With That? From ZeroHedge In a\u2026","rel":"","context":"In \"Germany\"","block_context":{"text":"Germany","link":"https:\/\/climatescience.press\/?tag=germany"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0da001cc0910f209d81601af0beeddd22.jpg?fit=1200%2C601&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0da001cc0910f209d81601af0beeddd22.jpg?fit=1200%2C601&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0da001cc0910f209d81601af0beeddd22.jpg?fit=1200%2C601&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0da001cc0910f209d81601af0beeddd22.jpg?fit=1200%2C601&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/0da001cc0910f209d81601af0beeddd22.jpg?fit=1200%2C601&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":260723,"url":"https:\/\/climatescience.press\/?p=260723","url_meta":{"origin":278429,"position":4},"title":"Renewables Zealots Love Spearing Wind Turbines in Your Backyard \u2013 But Not Their\u00a0Own","author":"uwe.roland.gross","date":"06\/05\/2023","format":false,"excerpt":"Rank hypocrisy comes in all shapes and sizes, but the kind that attends the renewable energy zealot is an altogether different species.","rel":"","context":"In \"Australian wind power\"","block_context":{"text":"Australian wind power","link":"https:\/\/climatescience.press\/?tag=australian-wind-power"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0thumbnail-5b9aa87dbd20b1b9295088afbe52b892-2048x1439-1.jpeg?fit=1200%2C843&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0thumbnail-5b9aa87dbd20b1b9295088afbe52b892-2048x1439-1.jpeg?fit=1200%2C843&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0thumbnail-5b9aa87dbd20b1b9295088afbe52b892-2048x1439-1.jpeg?fit=1200%2C843&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0thumbnail-5b9aa87dbd20b1b9295088afbe52b892-2048x1439-1.jpeg?fit=1200%2C843&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/06\/0thumbnail-5b9aa87dbd20b1b9295088afbe52b892-2048x1439-1.jpeg?fit=1200%2C843&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":287316,"url":"https:\/\/climatescience.press\/?p=287316","url_meta":{"origin":278429,"position":5},"title":"Scorched Earth: Subsidised Wind & Solar Wreaking Economic Havoc\u00a0Everywhere","author":"uwe.roland.gross","date":"11\/09\/2023","format":false,"excerpt":"The renewable energy industry is in full collapse mode this week. First, Orsted A\/S, the world's largest offshore wind farm developer, abandoned two major US projects due to supply chain and interest rate impacts, and now solar stocks are being clubbed like a baby seal in US premarket trading on\u2026","rel":"","context":"In \"BP\"","block_context":{"text":"BP","link":"https:\/\/climatescience.press\/?tag=bp"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-265.png?fit=1024%2C1024&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-265.png?fit=1024%2C1024&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-265.png?fit=1024%2C1024&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/11\/image-265.png?fit=1024%2C1024&ssl=1&resize=700%2C400 2x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/278429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=278429"}],"version-history":[{"count":5,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/278429\/revisions"}],"predecessor-version":[{"id":278437,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/278429\/revisions\/278437"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/278435"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=278429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=278429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=278429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}