Democrats granted significant tax incentives to a foreign company for wind turbine construction, but the projects might still be abandoned.

Democrats in New Jersey and Connecticut approved hundreds of millions‌ of dollars in ​taxpayer⁤ funds to incentivize a Danish green energy company​ to build offshore wind ⁤farms. Now, the company‌ is facing billions in lost value and‍ may⁤ need to scrap the projects.

Denmark’s Orsted, the world’s largest offshore​ wind company, on⁤ Wednesday announced it’s ‍facing supply chain problems and other ‌issues​ that could cause it to take​ a $2.3 billion hit ‌to its ⁤U.S. portfolio. The company’s issues are ​so‍ significant, Orsted’s chief executive said, that the foreign green energy giant could “walk away ‌from⁣ projects” in the United States.

That announcement is likely concerning for Democrats in New Jersey ⁣and Connecticut,‌ two blue‌ states that are using taxpayer cash to attract Orsted‍ to build wind farms off⁣ their coasts. New Jersey Democratic governor ⁣Phil Murphy⁢ in July signed ‍a bill that approved nearly $1 billion in subsidies for Orsted ⁤to install wind turbines off the coast of Atlantic⁢ City. Connecticut‍ Democratic governor Ned Lamont, ‍meanwhile, funneled ⁤ tens of millions of taxpayer dollars ‍toward public⁤ pier renovations to help accommodate ⁤an Orsted wind farm. Those projects are now in question.

Murphy, Lamont, and Orsted did ⁤not return requests for comment.

This is far from the first time a highly touted green energy company has encountered serious financial struggles despite receiving‌ support⁣ from liberal lawmakers. Earlier⁤ this​ month, Proterra—an electric vehicle ⁣company that the Biden administration repeatedly promoted—declared bankruptcy, citing ​”various market and macroeconomic headwinds.” Proterra shares ‌subsequently tumbled​ more than 60 percent, but only after ‌Energy Secretary Jennifer Granholm sold​ her shares⁢ in the company for $1.6 million.

Orsted’s shares also⁢ took ⁤a ⁣large hit following Wednesday’s announcement, with the foreign company losing a‌ quarter of ⁣its market ‌value. Consulting firm ‍Wood⁤ Mackenzie expects other green energy companies to suffer similar fates. “This will not be the last that we will​ see this year,” Soeren Lassen, the firm’s head of offshore⁤ wind, ⁣ told the New York⁣ Times.

Orsted’s project created⁤ bipartisan controversy in New Jersey even‍ before the ‍company’s financial woes. The state’s⁢ top Democrats are questioning the higher energy costs associated with the project—state ⁢House speaker Craig Coughlin​ and state Senate president Nick Scutari in an August joint ⁢statement cited the “many unanswered questions about ​the⁣ economic impact these projects‌ will ‌have on ratepayers.”

President Joe Biden’s support ⁢for⁤ failed green energy‍ companies extends beyond his presidency. ⁣As vice president, Biden heaped praise on solar energy company‍ Solyndra, which received a $535 million loan from the ⁤Obama-Biden administration.‌ Solyndra⁣ went on to declare bankruptcy.