Last week, Shell announced that it would be pausing its involvement in the Atlantic Shores offshore wind project, saying it no longer fit its capabilities or the returns the company expected. Shell owns half of the Atlantic Shores offshore wind development through a 50:50 joint venture with EDF Renewables, Atlantic Shores Offshore Wind, LLC.
“A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and backing away from the American clean energy market, as well as uncertainty driven by federal actions and permitting,” said 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.”
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Governor Phil Murphy also said that he supports the NJBPU’s decision on the fourth offshore wind solicitation and that the industry is currently dealing with numerous challenges.
“However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence. 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.”
In September 2022, Governor Murphy signed a new executive order, increasing the state’s offshore wind target for 2040 from 7.5 GW to 11 GW.
In response to the announcement made by NJBPU, Liz Burdock , founder and CEO of Oceantic Network, issued the following statement: “Today’s decision by the New Jersey Board of Public Utilities to cancel its fourth offshore wind solicitation is not surprising given political headwinds and the uncertainty across the U.S. economy driven by recent federal actions. We applaud New Jersey, Governor Murphy, and Atlantic Shores for their forward commitment to developing offshore wind energy, and the fundamental economic benefits it has already brought to area residents and businesses.”
“Despite today’s news, it remains true that offshore wind is creating jobs across the country, strengthening the American economy through a 40-state supply chain, and delivering reliable power to our grid. That supply chain has seen over $25 billion in investment, over 64% of which has gone to Republican districts.”
“Three projects are under construction right now, and seven more have completed their environmental reviews. The first substation for the Coastal Virginia Offshore Wind Project arrived last week, and the Maryland Public Service Commission recently awarded additional Offshore Renewable Energy Certificates to US Wind for its Maryland Offshore Wind Project. The industry continues to move forward.”
It is worth noting that US President Donald Trump issued an Executive Order last month, pausing offshore wind leasing on the US Outer Continental Shelf (OCS) and mandating a review of the federal government’s leasing and permitting practices for wind projects.
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