Earlier this month the Danish company, the world's largest offshore wind developer, also scrapped two U.S. offshore wind projects, flagging $5.6 billion in related impairments as costs ballooned due to rising interest rates and supply bottlenecks.

"Orsted has informed us that due to a prioritisation of investments in the portfolio, it will withdraw from pursuing participation in offshore wind developments in Norway, and therefore their participation in the partnership will discontinue," Norway's Bonheur ASA said in a statement.

Orsted could not immediately be reached for comment.

Bonheur's wholly owned subsidiary Fred. Olsen Seawind ASA, formerly called Fred. Olsen Renewables AS, and Norwegian power producer Hafslund formed the consortium, called Blaavinge, with Orsted in 2021 to take part in planned offshore wind tenders in Norway.

Norway set Nov. 15 as a deadline to submit interests to pre-qualify for a bottom-fixed offshore wind tender where the country plans to offer support for building up to 1.5 gigawatt (GW) of capacity.

Fred. Olsen Seawind and Hafslund will not be able to participate in the bottom-fixed wind tender now that Orsted has pulled out of the consortium, Bonheur said. However, they still plan to work on a tender for floating offshore wind turbines.

Norway has yet to announce the date for a floating offshore wind tender.

(Reporting by Nerijus Adomaitis; Editing by Susan Fenton)