Wind energy developer Orsted has announced that it is writing off $4 billion due to the cancellation of two large offshore wind projects in New Jersey. The cancellation of these projects highlights the financial challenges faced by the nascent offshore wind industry. Orsted cited problems with supply chains, higher interest rates, and a failure to obtain the desired amount of tax credits as reasons for scrapping the projects. The decision has raised concerns about the financial viability of the offshore wind industry in the northeastern U.S., which has extensive plans for development. Many offshore wind developers are seeking better terms from governments they have contracted with, but New York recently rejected such a request. Despite opposition from opponents who view offshore wind as unworkable without massive financial subsidies, supporters argue that it is a crucial way to transition away from fossil fuels. This viewpoint is reinforced by the recent record-breaking summer temperatures, which highlight the urgency of adopting clean and renewable energy sources. Orsted's stock price dropped over 26% following the announcement. The company hopes to reuse some supplies it has already purchased, such as cable and steel, for other projects. In addition to financial challenges, the offshore wind industry also faces political headwinds, particularly from Republicans. Rep. Jeff Van Drew celebrated the cancellation of the projects, calling wind farms bad for the economy, the environment, and electric customers. Despite these setbacks, some wind projects are still moving forward. Orsted will proceed with its Revolution Wind project in Connecticut and Rhode Island, and Dominion Energy received federal approval for an enormous wind farm off the coast of Virginia. The industry remains promising, with several other offshore wind projects still in development in New Jersey. Atlantic Shores, a project by Shell New Energies US and EDF Renewables North America, has expressed its commitment to its project and is in discussions for additional support.