Ørsted just axed plans for two New Jersey offshore wind farms – here’s why
New Jersey’s governor is furious because Ørsted canceled two huge offshore wind farms off the New Jersey coast – this is what happened.
Ocean Wind 1 won’t be New Jersey’s first offshore wind farm after all.
In a major reversal, Ørsted says it’s killing the 1,100-megawatt (MW) Ocean Wind 1 and 1,148-MW Ocean Wind 2 projects, just as construction was about to start on Ocean Wind 1. Electrek only just reported on October 12 that Ørsted had put up a $100 million guarantee that it would have Ocean Wind 1 online by December 2025.
In a statement today, David Hardy, group EVP and CEO Americas at Ørsted cited “high inflation, rising interest rates, and supply chain bottlenecks” for the cancellation.
Ørsted says it intends to retain the seabed lease area and consider its best options as part of a US offshore wind portfolio review it’s conducting. It has an update planned for its Q4 2023 results announcement.
And on Ørsted’s earnings call this morning, Ørsted CEO Mads Nipper went into more detail about what defeated the two projects. He told reporters that the biggest reason is “further significant delays on [installation] vessel availability.” He didn’t name the installation vessel company, but the Ocean Wind 1 project has so far been working with vessels belonging to Belgium-based wind farm installer DEME Group.
He went on to explain that a lack of installation vessels would mean a multi-year delay for Ocean Wind 1. That would mean the company would have to re-contract all its project scopes at “expectedly higher prices – that was the reason for the swing.”
In July, to help keep the financially struggling projects afloat, Governor Phil Murphy (D-NJ) signed a law that allowed Ørsted to keep federal tax credits that it otherwise would have had to return to ratepayers.
So, unsurprisingly, Murphy’s pretty angry. New Jersey taxpayers won’t lose funds from the pullout, but the state and its residents are losing a critical source of clean energy, billions of dollars in investments, and thousands of local jobs the two projects were slated to provide.
In a statement, Murphy said:
Today’s decision by Ørsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence.
As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project. In recognition of the challenges inherent in large and complex projects, my Administration in partnership with legislative leadership insisted upon important protections that ensure New Jersey will receive $300 million to support the offshore wind sector should Orsted’s New Jersey projects fail to proceed.
I have directed my Administration to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations.
Electrek’s Take
It’s a major setback for sure, seeing how New Jersey has a 7.5 gigawatt (GW) of offshore wind by 2035 target, and there’s also that pesky thing called climate change, but all is not lost. The 1.5 GW Atlantic Shores Offshore Wind project is still moving forward off the coast of Atlantic City, and the state is expected to announce another offshore wind solicitation at the beginning of 2024. Nearly 40 New Jersey advocates released a statement today that reaffirms their support for offshore wind.
And in another bit of news that slightly takes the sting off, Nipper said that Ørsted will move forward on Revolution Wind, Connecticut and Rhode Island’s 704 MW offshore wind farm, as it’s secured an installation vessel – the Scylla – so the company feels “comfortable moving [the project] forward.” The South Fork project in New York State is also quickly progressing.
And one final point: The “grassroots” group in Cape May County that’s been fighting the Ocean Wind projects wants to take credit for their demise. They claim that Ørsted is running scared in “the face of unrelenting opposition” from Cape May County after they recently filed a federal lawsuit.
As I’ve said, I don’t take the Cape May County government’s objections seriously. It’s led by Michael J. Donohue, Republican County chairman, who is “special counsel on offshore wind” to the group. And its counsel has extensive ties to a big-oil-funded legal movement that generally works to stop climate policy.
Further, the group’s “studies” that it cites to back its lies about wind farms killing whales and birds sources aren’t relevant or credible – for example, the noise from one oil tanker is 20,000x more disruptive to ocean life than one stationary wind turbine. There’s more than a whiff of politics, not science, around their objections. They ultimately got what they wanted for now but didn’t cause it.
Read more: The US’s largest offshore wind farm just got the green light
Photo: Ørsted
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The India-flagged oil tanker Desh Ujaala is pictured in the Gulf waters near Al-Basrah Oil Terminal (ABOT), about 50 kilometres offshore of Iraq’s southern Faw peninsula, on August 5, 2025.
Hussein Faleh | AFP | Getty Images
U.S. President Donald Trump said Wednesday that Indian Prime Minister Narendra Modi told him New Delhi will stop buying oil from Russia, though the move will take time.
“[Modi] assured me today that they will not be buying oil from Russia. That’s a big stop.” Trump said at the press briefing in the Oval Office. “Now we’ve got to get China to do the same thing.”
He added that Washington was unhappy with New Delhi’s purchases of Russian crude because it allowed Moscow to continue waging its “ridiculous war” in Ukraine.
However, the U.S. president also said that the halt will not be immediate, and there will be “a little bit of a process,” without giving a clear timeline.
India’s external affairs ministry said Friday that the country’s oil import decisions are driven by efforts to protect consumers by ensuring stable energy prices and securing supplies.
The ministry’s priority was to “safeguard the interests of the Indian consumer in a volatile energy scenario,” External Affairs Ministry spokesperson Randhir Jaiswal said in a statement.
He added that India’s import policies are guided “entirely” by that goal.
Jaiswal said that India has sought for years to expand energy trade with the U.S. “This has steadily progressed in the last decade,” he said, adding that “the current Administration has shown interest in deepening energy cooperation with India. Discussions are ongoing.”
India and Russian crude
India’s imports of Russian oil have been a sticking point in the relationship between Washington and New Delhi. Trump slapped additional tariffs of 25% on India back in August, raising the total levy to 50%, while India has called out the U.S. for its trade with Russia.
“If India doesn’t buy [Russian] oil, it makes [ending the war] much easier,” Trump said. “They assured me within a short period of time, they will not be buying oil from Russia, and they will go back to Russia after the war is over.”
On Thursday, Brent crude futures climbed 0.82% to $62.43 a barrel by 10:31 p.m. ET, while U.S. West Texas Intermediate futures climbed 0.89% to $58.79.
India is one of the biggest buyers of Russian oil. Data from research firm Kpler shows Russia exports about 3.35 million barrels of crude per day, with India taking about 1.7 million and China 1.1 million.
New Delhi has defended those purchases, with Energy Minister Hardeep Singh Puri telling CNBC in July that New Delhi helped stabilize global energy prices and was encouraged by the U.S. to do so.
“If people or countries had stopped buying at that stage, the price of oil would have gone up to 130 dollars a barrel. That was a situation in which we were advised, including by our friends in the United States, to please buy Russian oil, but within the price cap,” Puri said.
Russian sales of crude oil have been placed under a price cap by the G7 nations and the European Union since Moscow’s 2022 invasion of Ukraine.
That price cap, set at $47.6 per barrel, aims to limit Moscow’s revenue from oil exports, constricting the country’s ability to finance its war in Ukraine.
Kia is about to go on the offensive. The automaker plans to nearly triple electric vehicle production in Europe within the next two years as it introduces the new EV2 and EV4.
Kia doubles down on EV2 and EV4 production plans
With the EV2 and EV4 joining the lineup, Kia will offer an electric vehicle for nearly everyone. The EV2 is Kia’s smallest, most affordable electric car, set to sit below the EV3.
Despite its compact size, Kia said the EV2 will “redefine urban electric mobility” with a flexible interior, its latest connectivity tech, and more.
According to Kia’s CEO, Ho Sung Song, the company plans to build about 100,000 EV2s at its Zilina plant in Slovakia.
“The average annual production of the upcoming EV2 is expected to reach around 100,000 units at the Zilina plant in Slovakia in 2027,” Song told Automotive News Europe earlier this month.
Kia is also scaling up output of its first electric hatchback, the EV4. By 2027, Kia plans to build over 80,000 EV4s at the Zilina plant. If you add in the EV4 Fastback or sedan models built in Korea, “the EV4’s combined global production is expected to reach approximately 100,000 units,” Kia’s CEO said.
Song explained that Kia aims to produce 100,000 EV2 and EV4 models globally each year, as this volume will be high enough to make them profitable.
The new production target is considerably higher than what Kia Europe CEO Marc Hedrich told Automotive News Europe in August.
Hedrich said that combined EV2 and EV4 production could account for 10% and 20% of the output at the Zilina plant in 2026, adding that a production goal of 20,000 to 30,000 EV4s “would certainly make sense” next year.
Officials from Kia Europe explained that production plans shifted after the EV4 received better-than-expected feedback following its launch in August.
Kia began EV4 production on August 20, marking a milestone as its first EV built in Europe. Kia is investing €108 million ($125 million) in the Zilina plant to produce the EV2 and EV4. The EV2 will join in 2026.
The facility has the capacity to build 320,000 vehicles, but Kia said output could be expanded to 350,000 with overtime.
Kia has yet to reveal final specs, but given the EV3 is about 4,300 mm (169.3″) in length, the EV2 is expected to be slightly smaller at around 4,000 mm (157″). That’s about the size of Hyundai’s entry-level EV, the Inster, at 3,825 mm (150″) in length.
Like the EV9 and recently launched EV5, Kia’s compact electric car features a more upright, crossover-SUV-like design.
Although Kia’s overall sales are down 3% in Europe through August, EV sales are up 56% to 71,179. The EV3 is driving growth as Kia’s second-best-selling vehicle behind the Sportage and as the seventh best-selling EV in Europe. Through the first eight months of 2025, Kia sold 45,269 EV3s in the region.
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Honda’s electric SUV was the third most popular EV in the US in August, behind the Tesla Model Y and Model 3. Offering over $12,000 in average incentives, the Honda Prologue scored big as buyers rushed to claim the federal EV tax credit.
Honda Prologue registrations surge with huge incentives
As the $7,500 credit expired at the end of September, automakers were offering pretty notable discounts, many in the five digits with combined incentives.
The Honda Prologue has been one of the most discounted EVs over the past few months. Last month, buyers could score up to over $20,000 in combined savings, including a $7,500 credit, $9,500 in financing bonuses, trade-in offers, and 0% interest for six years.
According to the latest registration data from S&P Global Mobility (via Automotive News), the incentives helped propel the Honda Prologue to become the third most popular EV in August.
A total of 138,457 EVs were registered in the US in August, up 24% from a year ago. Honda Prologue registrations surged 81% to 9,005 vehicles, the data showed.
Since some automakers don’t report monthly or US sales numbers, the S&P Global Mobility data offers a snapshot of sales performance.
The Prologue was yet again one of the most discounted models, with incentives of $12,704 in August, according to Motor Intelligence. Last August, Prologue incentives were just $5,813. Honda’s gas-powered CR-V had just $2,016 in incentives in August.
Although the $7,500 credit expired on September 30, Honda is still offering generous incentives for Prologue buyers and lessees.
The 2025 Honda Prologue is available with up to $16,550 in lease cash in most states. Alternatively, Honda is offering 0% APR financing for up to 60 months.
2025 Honda Prologue trim |
Starting Price* | EPA Range (miles) |
| EX (FWD) | $47,400 | 308 |
| EX (AWD) | $50,400 | 294 |
| Touring (FWD) | $51.700 | 308 |
| Touring (AWD) | $54,700 | 294 |
| Elite (AWD) | $57,900 | 283 |
Although the Acura ZDX will not return for a 2026 model year, Honda is planning to launch the 2026 Prologue. We have yet to learn prices, but we could see it priced slightly lower due to the loss of the $7,500 EV credit.
Hyundai announced earlier this month it’s reducing 2026 IONIQ 5 prices by up to nearly $10,000 on some trims. The 2026 Hyundai IONIQ 5 now starts at under $35,000. Will Honda match it?
Want to check out the Prologue for yourself? You can use our link to find available Honda Prologue models in your area (trusted affiliate link).
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