Orsted Withdraws from Norway’s Offshore Wind Ventures

Orsted wind energy

Orsted, the global leader in offshore wind development, has opted to withdraw from a consortium set to bid on offshore wind projects in Norway. This decision comes just ahead of the pre-qualification deadline, leaving its partners reevaluating their strategies, Reuters news report said.

The Danish energy giant recently made headlines with the abandonment of two U.S. offshore wind projects, citing substantial impairments totaling $5.6 billion. This move was prompted by escalating costs stemming from rising interest rates and supply chain challenges.

Norwegian firm Bonheur ASA confirmed Orsted’s exit, quoting a shift in the company’s investment focus within its portfolio. Orsted, responding to Reuters via email, clarified that its current business development goals involve adjusting activities, particularly in emerging markets, rather than prioritizing Norwegian offshore wind endeavors.

The consortium, comprising Orsted, Fred. Olsen Seawind ASA (formerly Fred. Olsen Renewables AS), and Hafslund, known as Blaavinge, initially aimed to participate in Norway’s planned offshore wind tenders.

However, Orsted’s departure disrupts this partnership, impacting Fred. Olsen Seawind and Hafslund’s eligibility for the bottom-fixed wind tender. Nonetheless, both entities intend to redirect their efforts toward a separate tender focused on floating offshore wind turbines.

While Norway has set a November 15 deadline for pre-qualification interests in the bottom-fixed offshore wind tender, the country has yet to announce the schedule for a floating offshore wind tender, leaving the future of these projects in suspense.