(Bloomberg) -- New York state agreed to buy electricity from offshore wind farms being planned in the Atlantic Ocean, marking progress for the struggling industry after inflation forced some projects to be canceled.

The projects that won power contracts include Sunrise Wind, an Orsted A/S-backed project from that’s 30 miles east of Long Island, and Equinor ASA’s Empire Wind, which is south of Long Island. The deal was announced on Thursday by the governor’s office. 

New York’s move injects promise into an industry that has been bogged down by inflation, rising costs and supply-chain woes — obstacles that contributed to some projects being delayed or canceled. The projects, however, are a critical component of the region’s goal to produce green energy. 

“The competitively selected projects will create more than 800 near-term family-sustaining construction jobs and invest $2 billion in near-term enhanced economic development statewide,” the statement said. 

Read More: Orsted Says US Offshore Wind Deals Protect Against Inflation

The win by Orsted will help reduce the losses it announced on its struggling US portfolio last year. 

The award for Sunrise Wind will allow Orsted to reduce its impairment losses by about 1.8 billion Danish kroner ($261 million), it announced in its annual report. Had the company not won an award, it would likely have led to a 5.5 billion kroner ($798 million) impairment.

President Joe Biden set a target in 2021 of deploying 30 gigawatts of offshore wind capacity by 2030, part of his goal to cut emissions from the US electric grid and slow climate change. But the cascading series of setbacks have some analysts projecting the US will reach little more than half that amount by the end of the decade.

Two big developments, Vineyard Wind near Massachusetts and South Fork Wind off the coast of New York, began sending electricity ashore in recent months. 

--With assistance from William Mathis.

(Story updates with Orsted impact in fifth and sixth paragraphs.)

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