How Global Offshore Wind Is Battling a Perfect Storm of Challenges

Core Insights - The offshore wind sector is facing significant challenges, leading to project cancellations and strategic restructuring among major companies [1][3][6] Group 1: Project Cancellations and Financial Impacts - Ørsted canceled the construction of a wind turbine installation vessel for the Hornsea 4 offshore wind farm, paying $110 million in compensation due to rising costs and construction risks [1] - Equinor abandoned its plans to invest in Vietnam's offshore wind sector, marking a significant setback for the country's green energy ambitions [2] - Cadeler upgraded its 2025 revenue forecast to EUR 588 million to EUR 628 million, boosted by termination compensation [4] - Seatrium's contract with Maersk Offshore Wind, valued at $475 million, was terminated, leading to a nearly 15% drop in its shares [5] Group 2: Market Dynamics and Growth Projections - The global offshore wind sector is experiencing supply chain constraints and policy volatility, which are hindering growth [3] - The U.S. offshore wind sector is facing policy headwinds, with the Trump administration canceling approximately $679 million in project funding [7] - Europe remains the largest offshore wind market, accounting for 92% of the floating offshore wind market, while the Asia-Pacific region is projected to grow at a 156% CAGR through 2030 [7]