Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)
Offshore wind in New Jersey is all but dead with the latest actions taken by an Atlantic Shores investor, the Board of Public Utilities and the Economic Development Authority this week.
Gov. Phil Murphy issued a statement Monday regarding the BPU’s decision to scrap its fourth offshore wind solicitation. Murphy has made offshore wind a priority industry for the state and set a goal of 50% renewable energy by 2030 and a 100% clean energy economy by 2050.
The once-in-a-generation opportunity to create thousands of jobs and secure energy independence is facing severe challenges with Shell’s withdrawal, Murphy said. Shell made the announcement that it was withdrawing from the project at its Jan. 30 quarterly earnings report agreeing to take a nearly $1 billion loss.
Murphy urged “patience and prudence” in facing the challenges of creating reliable, cost-effective energy solutions to climate change.
“I support the BPU’s decision on the fourth offshore wind solicitation, and I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs,” he said.
There were three initial bidders in the fourth solicitation but two withdrew, leaving Atlantic Shores as the best offer, according to BPU President Christine Guhl-Sadovy, .
“The Board concluded that an award in New Jersey's fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time,” she said.
In a statement, Shell indicated challenges from the president aimed at ending offshore wind in favor of “drill, baby, drill” as the reason for abandoning the Atlantic Shores project, which promised enough energy to power more than 30 million homes across the state.
“This is a significant shift from the support the industry enjoyed under former President Joe Biden, despite the recent increase in costs,” Shell CFO Sinead Gorman explained during a call with reporters.
She stated that the project “no longer aligns with Shell's capabilities or the returns the company expects.”
The withdrawal resulted in a $996 million loss for the company.
Original developer, Orsted, abandoned the project in late 2023 also citing financial concerns.
Despite losing its 50-50 partner, Atlantic Shores said it is still committed to delivering the state’s first offshore wind project.
“While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits,” Atlantic Shores posted on its website.
Atlantic Shores has two projects that promise to produce 2,800 megawatts of clean energy that have already received construction and operations approvals from the Bureau of Ocean Energy Management.
If these developments were not enough to put offshore wind on life-support, NJ Economic Development Authority CEO Tim Sullivan on Monday said it would be seeking alternatives to the NJ Wind Port in Salem County that promised to be an economic driver in the development of the offshore wind industry.
“In light of the significant uncertainties in the offshore wind market, we have decided to accelerate our strategic review of options and alternatives for the New Jersey Wind Port. While recent developments at the federal level and announcements from offshore wind developers are deeply disappointing, they were not unexpected. We have taken a cautious approach to further development of the port since 2023, and we have worked to identify alternative uses that would maximize the economic development, job creation, and financial potential of the site for the State.”
Not everyone is disappointed in the demise of offshore wind.
“WE DID IT!!!! Atlantic Shores is NO MORE!!” Keith Moore of anti-wind group Defend Our Beaches NJ said in a Facebook post.
“While there are a few loose ends to tie up our Brigantine shores should now be turbine free. Defend Our Beaches NJ and our partners pulled it off folks…We believe that lawsuits that we filed had a significant impact in the BPU's final determination to stop offshore wind in New Jersey.”
Trump signed an executive order on Inauguration Day calling for the suspension of all offshore wind leases in federal waters of the Outer Continental Shelf for an indefinite period.
In the executive order, Trump cites demand for reliable energy, marine life, the fishing industry and costs for Americans as the reasons to temporarily withdraw energy leases, effective Jan. 21 and until he revokes the order. It also states there shall be no new offshore wind energy leases or renewals.
“It’s the most expensive energy there is. It’s driving the whales crazy,” Trump said Jan. 7.
Offshore wind detractors who advocated against them in a flurry of lawsuits over the last two years saying they were killing whales, would destroy fishing and the tourism industry, said the president heard their voices.
U.S. Congressman Jeff Van Drew (R-2nd) called them “awful projects.”
In an op-ed, Chamber of Commerce Southern New Jersey DEO Christina Renna said the chamber approached the governor’s energy goals with caution.
“Although the door is not completely shut on South Jersey’s wind energy aspirations, this decision is what is best for South Jersey given the current climate,” she wrote. “Let’s not harp on what this decision means for the future of wind energy and instead focus on what is best for the region – finding a new tenant for the Port, a location brimming with potential that promises to create jobs in an area of the State in desperate need of economic activity and job growth.
