Shell is writing off a nearly $1 billion investment. It announced its decision on Thursday, as it reported a 16% decline in full-year earnings of $23.7 billion from $28.3 billion. Most of its business is oil and gas.
Danish wind developer Orsted was close to beginning work on two offshore wind farms in New Jersey but scrapped the project in Oct. 2023 after deciding it would not be economical.
A lot of clean energy is cheap now, but offshore wind is still among the most expensive. That can make these projects less attractive to investors, absent strong policy support, said Coco Zhang, vice president for environmental, social and governance research at ING.
“The potential uncertainty that the executive order has brought to the market, it cannot be ignored,” she said.