Energy Giant Vattenfall Puts Gigantic Offshore Wind Project On Ice, “Threatening UK Climate Targets”

As Europe adventurously moves to wean itself off fossil fuels, more and more plans are being made to fill the electricity supply gap with wind energy.

But one major UK wind project illustrates how they are economically risky as the economy teeters.

Symbol photo. Image: P. Gosselin

Blackout News here reports that Swedish energy giant Vattenfall “has halted a gigantic offshore wind project, one that would supply electricity to 1.5 million households if built.

Blackout News calls the decision to halt the 1.4 gigawatt capacity Norfolk Boreas “surprising”.

“Vattenfall’s decision to halt work on the wind farm has significant financial consequences,” reports Blackout News. It means a 537 million dollar loss.  “Vattenfall’s strategy reorientation threatens UK climate targets.”

According to sources, experts are warning of “sharply increased project costs, inflation and rising interest rates” and the project developers are calling for “targeted support”.

The UK government aims to increase its offshore wind capacity from 14GW to 50 GW, so Vattenfall’s move is a major blow to the UK’s energy future.

German electricity prices to high for industry

Uncertainty has also hit the German automobile sector, in large part due to sky-high energy prices. In another Blackout News report here, VW head Oliver Blume thinks building a large new battery factory in Germany is more difficult because of the high electricity prices, which are far above the 7 cents per kilowatt-hour the VW head says is needed.

“The production of battery cells is energy-intensive, Blume stressed. Price guarantees and the level of electricity prices are therefore very important. Regulatory processing and subsidies also play a role in the choice of location,” writes Blackout News

“I have experienced these aspects very positively in North America,” Blume told the two German newspapers.

Under the bottom line, the German government isn’t really deindustrializing, but rather is forcing German companies to move its industry out of the country using hostile policy. Germany faces a state of permanent economic recession.

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