Denmark’s Ørsted, the world’s largest offshore wind farm developer, said on Aug. 30 it may see U.S. impairments of 16 billion Danish crowns (US$2.3 billion) due to supply chain problems, soaring interest rates and a lack of new tax credits.

Ørsted’s share price tumbled 20% to its lowest level in more than four years and is down almost 70% from its 2021 peak.

“The situation in U.S. offshore wind is severe,” CEO Mads Nipper told reporters on a conference call.

The company’s Ocean Wind 1, Sunrise Wind and Revolution Wind projects are adversely impacted by several supplier delays, which may trigger impairments of up to 5 billion crowns, the company said in a statement.

Ørsted said the company’s discussions with “senior federal stakeholders” on obtaining more U.S. tax credits for its offshore wind projects had not progressed as expected, which in turn could lead to impairments of another 6 billion crowns.

On top of this, the increase in long-dated interest rates in the United States affected both offshore as well as some onshore wind projects and will cause impairments of around 5 billion crowns, Ørsted said.

“Today’s announcement flags risks in the U.S. portfolio and does not do anything to improve the downbeat investor sentiment on the stock,” analysts at Bernstein said in a note to clients.

Ørsted bought its remaining stake in Ocean Wind 1, the 1.1-gigawatt (GW) wind power project off the coast of New Jersey, from Public Service Enterprise Group earlier this year.

The company on Aug. 30 said it does not expect the anticipated impact to change its previously announced EBITDA guidance for the year.

The U.S. government has set a national goal to develop 30 GW of offshore wind by 2030.