Shell sells stake in SouthCoast Wind Energy to Ocean Winds North America

By Thomson Reuters Mar 20, 2024 | 4:19 PM

(Reuters) – Energy firm Shell said on Wednesday it had sold its 50% stake in SouthCoast Wind Energy, established to develop wind projects off the coast of Massachusetts, to its joint venture partner Ocean Winds North America for an undisclosed sum.

Offshore wind developments faced a slowdown in 2023 as rising inflation, higher borrowing costs and supply chain snags led to a jump in costs.

Renewable energy firm Orsted last year halted the development of two U.S. offshore wind projects and said related impairments had surged above $5 billion.

Earlier this year, European energy firms Equinor and BP terminated their agreement to sell power to New York state from their proposed Empire Wind 2 offshore wind farm.

The SouthCoast Wind project was created in 2018 as a 50-50 joint venture to develop a proposed offshore wind farm with a capacity of about 2,400 megawatt (MW).

(Reporting by Kabir Dweit in Bengaluru; Editing by Devika Syamnath)