Wind turbine manufacturer Siemens Gamesa, part of Germany’s Siemens Energy, has decided not to proceed with plans to build an offshore wind blade manufacturing plant in Portsmouth, Virginia, USA. 

The $200 million project was announced in October 2021, but on Friday the company announced that the plans have been shelved. The facility was set to be the first to produce offshore wind turbine blades in the US.

Recently, there have been several cancellations of offshore wind farms in the United States, and Siemens Gamesa has also experienced major financial difficulties due to quality problems resulting in high warranty costs.

”Siemens Gamesa suspended plans to build and operate an offshore blade facility in Virginia as the development milestones for the facility could not be met,” a Siemens Gamesa spokesperson said in a statement according to Virginia Business

The company adds that it will continue to fulfill its commitments to the Coastal Virginia Offshore Wind project being developed by Dominion. However, the components for that project will instead be manufactured in Europe.