PARIS (Reuters) – Oil major Shell 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.
(This story has been refiled to add dropped word in lead)
(Reporting by Charlotte Van Campenhout, editing by Tassilo Hummel)