DNNGY - Wind developer Ørsted ekes out tax break win in New Jersey legislature

2023-06-30 18:36:34 ET

A bill to let offshore wind developer Ørsted ( OTCPK:DNNGY ) keep tax credits that it otherwise would have to return to New Jersey ratepayers was narrowly approved by the state legislature Friday.

The bill to allow Ørsted ( OTCPK:DNNGY ) to keep federal tax credits was designed to help offset perceived lingering economic effects from the COVID-19 pandemic and high inflation that hindered development of the Ocean Wind I project, which aims to generate enough electricity to power 500K homes.

Amendments added to the legislation in recent days require the company to post a $200M guarantee with the state and prepare a report on the financial viability, environmental impacts and likelihood of finishing the project on time.

More on Ørsted:

• Financial and valuation comparison to sector peers
• Analysis: Ørsted: Solid Renewables Company, Undervalued With Strong Pipeline
• Stock price return: Up 2% YTD, down 9.5% in the past 12 months

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