BP Low Carbon Boss Calls U.S. Offshore Wind Industry ‘Fundamentally Broken’

Orsted, the world’s largest offshore wind developer, followed on Wednesday in flagging writedowns of up to $5.6 Billion over its decision to halt the development of U.S. offshore wind projects.

Anja-Isabel Dotzenrath told an FT Energy Transition conference in London that problems in the United States included permitting, the time lag between signing power purchase agreements and projects being built and a lack of inflationary adjustment mechanisms.

She added that BP and Equinor are studying a new proposal by U.S. regulators that would allow the companies to rebid for projects in an “accelerated” process.

“There is a path forward but it’s challenging,” Dotzenrath told reporters on the sidelines of the conference.

“I believe all these projects will be built.”