Posted on October 15, 2025
Over the past couple of years, the global offshore wind sector has been facing growing pains, with supply chain constraints, policy volatility, and economic headwinds threatening a power segment that has been slated to become the most dominant wind energy source in many regions. These challenges are increasingly forcing companies in the space to abandon projects and undergo strategic restructuring as the momentum for offshore wind and other nascent clean energy industries, such as hydrogen, wanes. To wit, last year, Shell Plc (NYSE:SHEL) announced plans to cease new offshore wind investments and split its power division as CEO Wael Sawan looks to boost the company’s profitability. Shell appears to be systematically scaling back its clean energy investments: Earlier in the year, the company also ditched plans to build a low-carbon hydrogen plant on Norway’s west coast due to a lack of demand.
Earlier in the same year, Norway’s state-controlled energy giant Equinor ASA (NYSE:EQNR) abandoned plans to invest in Vietnam’s offshore wind sector, dealing a significant blow to the country’s green energy ambitions. According to the World Bank, over the past couple of years, Vietnam has attracted plenty of interest in its clean energy sector thanks to the country’s strong winds in shallow waters near coastal, densely populated areas. Unfortunately, recent political turbulence in the country has paralyzed regulatory reforms and discouraged investors. That marked the first time Equinor had abandoned offshore wind development; in contrast, the company had previously exited more than a dozen fossil fuel projects to focus on renewables and low-carbon systems. Back in 2023, Danish offshore wind giant Ørsted A/S (OTCPK:DNNGY) paused its multi-gigawatt offshore wind plans in Vietnam, citing issues with the “route to market,” business ethics, and a lack of a comprehensive legal framework for the sector.
Unfortunately, the offshore wind sector woes appear to be going nowhere. Back in July, Ørsted paid $110 million to Danish offshore wind services provider Cadeler (NYSE:CDLR) as compensation for the cancellation of the construction of a wind turbine installation vessel (WTIV) for the 2.4 GW Hornsea 4 offshore wind farm in the UK. In May, Ørsted announced the cancellation of the project, citing higher rates, rising supply chain costs and increased construction risks as some of the challenges. Ørsted was among the developers who were awarded contracts in the UK’s Allocation Round 6 (AR6) in 2024 that procured 9.6 GW of clean energy capacity from offshore and onshore wind and solar energy. AR6 marked a major improvement from AR5, which failed to secure any new offshore wind projects.
On a brighter note, Cadeler’s short-term financials will receive a boost from the receipt of the termination compensation, with the company recently upgrading its full-year 2025 revenue to the range of EUR 588 million to EUR 628 million, up from EUR 485 million to EUR 525 million, while the EBITDA forecast for 2025 is expected to clock in at EUR 381–421 million, up from EUR 278–318 million.
Meanwhile, Singapore’s Seatrium Ltd (OTCPK:SMBMF) recently received a notice of the termination of a WTIV contract by Maersk Offshore Wind valued at $475 million. Seatrium had secured the contract in 2022 while still operating as Sembcorp Marine, before it merged with Keppel Offshore and Marine in 2023 in a $3.34 billion deal. Maersk says it will try and recover monies already paid to Seatrium, adding that it will not accept delivery of the unit due to delays in the construction schedule despite the project being ~ 98.9%. Seatrium shares have tanked nearly 15% after the announcement of the Maersk decision.
Maersk’s cancellation of the Seatrium deal could signal that it’s abandoning the offshore wind business, which says something considering the startling fall of its core container shipping business. Earlier this month, Reuters reported that container shipping rates for the busy Shanghai to Los Angeles route have declined by nearly 60%, meaning the company is likely receiving below $2,200 per container it requires to break even.
That said, the U.S. offshore wind sector could fare worse than its European peers thanks to policy headwinds by the Trump administration. Trump has cancelled ~$679 million in U.S. offshore wind project funding, stifling growth and development of the nascent sector. In contrast, WindEurope recently reported it built 6.8 GW of wind power across Europe in the first half of 2025, comprising 6 GW onshore and 0.7 GW offshore. Europe is, by far, the biggest offshore wind market in the world, commanding 92% of the floating offshore wind market. However, Asia-Pacific is enjoying the fastest growth, with the region projected to expand at a torrid 156% CAGR through 2030.
