Ørsted is reportedly trying to get out of a $300 million guarantee it agreed to pay New Jersey if it failed to build a wind farm off the coast. According to The Associated Press, Ørsted sent a letter to the state Board of Public Utilities withdrawing from the agreement, saying the BPU never officially approved the deal and the company is no longer pursuing the tax incentives related to the project.
“We withdrew our filings because we are no longer developing Ocean Wind I and thus are no longer pursuing the tax incentives related to the project,” Ørsted said in an email statement.
The Murphy administration in July approved a tax break that would have allowed Ørsted to keep federal tax credits that otherwise would be returned to ratepayers if the project was built.
But according to BPU, an escrow agreement was made with Ørsted in late September and a guarantee agreement was formalized in October.
Ørsted announced last week the company is pulling out of its two offshore wind projects here due to rising costs.
