Atlantic Shores Requests to Terminate 1.5 GW OREC Contract with New Jersey | ‘Presidential Wind Memorandum, Subsequent Actions Directly Impacted Project Feasibility’

The developer has listed the milestones achieved towards the construction of the offshore wind farm, including securing all federal permits, completing preferred supplier and reservation agreements for the majority of the work, and investing in the local supply chain and workforce.

Atlantic Shores also says in the petition to the NJBPU that in preparation for taking a final investment decision (FID) and achieving financial close in 2025, it had commenced a financing due diligence process and bank sounding, to which over 45 banks responded.

However, the Presidential Wind Memorandum on 20 January and the developments that followed led to Atlantic Shores Project 1 no longer being viable under the terms and conditions of the project’s existing OREC contract, according to the developer.

“This is despite Petitioner’s diligent and good faith efforts to advance the Project toward [completion], including submission of a rebid of the Project in the Fourth Solicitation, which was concluded by the BPU without an award. The Presidential Wind Memorandum and the federal government’s subsequent actions in response thereto have created significant uncertainty in the OSW industry and has directly impacted the feasibility of the Project” , the developer states in the petition.

The OREC contract Atlantic Shores is looking to terminate was awarded for the first Atlantic Shores offshore wind farm in 2021 , with the stipulation that the first phase of the offshore wind farm (761.6 MW) would start producing electricity by September 2027 and the remaining 748 MW would reach commercial operation by April 2028.

Last year, Atlantic Shores rebid the project in New Jersey’s fourth solicitation to secure better terms, but the NJBPU cancelled the solicitation in February, also citing uncertainty caused by recent federal actions.

At the end of January this year, Shell also said it was pausing its involvement in the Atlantic Shores offshore wind projects and decided to write off the investment in the project, booking an impairment of USD 996 million (around EUR 955 million) in Q4 2024 earnings.

Following Shell’s decision and reports the company was looking to monetise its stake, Atlantic Shores (EDF Renewables) said it remained committed to New Jersey and to delivering the state’s first offshore wind project.

Commenting on the developer’s filing of the petition with the NJBPU on 4 June, Oceantic Network, the US offshore renewable energy organisation, also pointed out that the move comes as a result of the current uncertainty created by the federal actions, noting that the petition to terminate the state OREC order does not mean the project was cancelled altogether.

“This decision is a result of the current unpredictability surrounding the federal permitting process and further delays a much-needed source of reliable, affordable, and renewable power for New Jersey businesses and families”, said Stephanie Francoeur , Senior Vice President of Marketing & Communications at Oceantic Network.

“Offshore wind is the only proven, shovel-ready solution offering long-term price stability, well-paying jobs, and millions of dollars of existing steel manufacturing and workforce investments that can provide relief for rising power demands and rate increases. In order to ensure long-term grid security for New Jerseyans, and to prevent other states from facing a similar fate, it is critical that the federal government reopen the permitting process and offer a predictable path for American offshore wind projects to move forward.”

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