Skipjack Wind off Delmarva Coast to be Repositioned

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Ørsted Thursday announced that it will reposition it’s Skipjack Wind 1 & 2 projects off the coast of Delmarva. This is a combined 966-megawatt project that’s been in development, however Ørsted has withdrawn from the Maryland Public Service Commission Orders after an extensive review. The payment amounts for Offshore Wind Renewable Energy Certificates (ORECs) set forth in the Orders are no longer commercially viable because of today’s challenging market conditions, including inflation, high interest rates and supply chain constraints. Ørsted officials say they will continue to advance Skipjack Wind’s development milestones, including its Construction and Operations Plan.

Community Benefits Agreements from US Wind are in consideration by coastal communities in Delaware for offshore wind projects.

Additional Information from Ørsted:

Ørsted intends to continue advancing development and permitting for the combined project, including submission of its updated Construction and Operations Plan to BOEM.

“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 is highly supportive of offshore wind, for future offtake opportunities,” said David Hardy, Group Executive Vice President and CEO 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 will continue to advance Skipjack Wind’s development milestones, including its Construction and Operations Plan.”

“We are 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 continued. “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.”

While macroeconomic factors are impacting offshore wind projects globally, Ørsted continues to advance, build and invest into U.S. several projects. With its partner, Eversource, its South Fork Wind project serving New York is set to reach full operations in the weeks ahead as the first commercial-scale offshore wind farm in America. Revolution Wind, also with Eversource and delivering power to Rhode Island and Connecticut, has already started construction activities. Sunrise Wind, also serving New York, was re-submitted today in the New York 4 solicitation, which, if awarded, would improve the project’s financial position and advance the most mature offshore wind project in the state’s pipeline.

In addition, Ørsted maintains valuable uncontracted seabed along the East Coast that is strategically positioned to create value and continue growing the U.S. industry. In the Northeast, approximately 10 GW of offshore wind energy is expected to be awarded this year, and the Mid-Atlantic has additional solicitations expected in the next 1 – 2 years.


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