Shares in major North Sea wind farm operator Orsted A/S tumbled on Wednesday after the company warned of significantly higher costs on US projects.
Supply chain issues paired with the higher interest payments on debt prompted the Danish company to warn of a 16 billion Danish krone (DKK) (£1.9 billion) jump in the cost of offshore projects in New Jersey, New York and Rhode Island.
Struggles obtaining tax credits has dealt further blows, the company said, leading to a 24% slip in Orsted shares to DKK423.8 on Wednesday.
Orsted operates the UK’s largest wind farm, Hornsea 2, which is situated off the Yorkshire coast, alongside several other sites in the North Sea.
Though chief executive Mads Nipper dubbed the situation “severe” in a media call, vice president David Hardy reassured that US offshore wind remained “attractive in the long term”.
“We will continue to work with our stakeholders to explore all options to improve our near-term projects”.
The news comes just weeks after another major developer, Vattenfall, shelved plans to build what would have been one of the UK’s largest offshore wind farms.