Ørsted exits Norwegian offshore wind partnership with Fred Olsen Seawind and Hafslund

Denmark’s Ørsted has scrapped plans to bid for offshore wind developments in Norway in partnership with Fred Olsen Seawind and Hafslund Eco.

“Ørsted have informed us that due to a prioritisation of investments in the portfolio they will withdraw from pursuing participation in offshore wind developments in Norway, and therefore their participation in the partnership will discontinue,” Olsen family’s investment firm, Bonheur, and parent company of Fred Olsen Seawind said in an Oslo Stock Exchange filing.

Ørsted joined forces with Fred Olsen Renewables and Hafslund in June 2021. The so-called Blåvinge consortium was targeting licenses in both areas appointed by the Norwegian government for bottom-fixed offshore wind in the Sørlige Nordsjø II area and floating wind in the Utsira Nord.

Bonheur said the Hafslund and Fred Olsen Seawind partnership would press ahead to pursue the Utsira Nord project, but that the duo is not in a position to pursue Sørlige Nordsjø II. 

Ørsted recently cancelled two offshore wind projects in the US—Ocean Wind 1 and 2 off the coast of southern New Jersey—citing $5.6bn in related losses as costs soared owing to rising interest rates and supply constraints.