Shell, Chinese partner to drop off-shore wind farm project in France

Business

Oil major Shell (SHEL.L) and state-owned Chinese energy company CGN on Tuesday said that they would drop their plan for a floating wind power project on France’s Brittany coast, citing inflation and supply chain problems among other reasons.

“The project faced several technical, commercial and financial challenges, all in a context of constantly increasing costs and very strong constraints in terms of inflation and supply chain,” the companies said in a joint statement.

The wind farm would have been located off the coast of Belle-Ile, an island popular with tourists and co-financed by a regional public investment bank.

“The economic conditions linked to the project have been significantly modified”, the companies said.