New Jersey has abandoned plans for a fourth offshore wind solicitation, effectively killing the proposed Atlantic Shores project after Shell withdrew last week as an equity partner.
The decision by state utility planners shatters Gov. Phil Murphy’s ambitions to shift the state’s power production to wind power and other renewables. Atlantic Shores would have been the remaining flagship project, after Ørsted abruptly cancelled its Ocean Wind plan in late 2023 amid soaring costs.
“The board will not proceed with an award in New Jersey's fourth offshore wind solicitation,” Christine Guhl-Sadovy, president of the state Board of Public Utilities announced Monday. “There were three initial bidders in the fourth solicitation. However, two bidders withdrew and only Atlantic Shores submitted a best and final offer.”
Shell’s withdrawal from the joint venture with EDF had left open whether another partner could be found. Atlantic Shores Offshore Wind LLC sought to continue with price adjustments to contend with the industry’s inflation and supply chain issues.
In a statement Governor Murphy insisted “developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence. This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy solutions.”
“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.”
After President Donald Trump’s Inauguration Day executive order for a six-month moratorium on offshore wind permitting, the end of New Jersey’s renewable drive is another setback for advocates.
‘It is clear that today’s decision at the state-level was a direct result of the corporate greed of Shell backing out as an equity partner, the fossil fuel industry at large, and a Federal administration that prioritizes profit margins and lining their pockets rather than the health of the American people and our environment.,” said Anjuli Ramos-Busot, director of the New Jersey Sierra Club.
BPU president Guhl-Sadovy said a new wind solicitation, “despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time…the Board is committed to working with Governor Murphy and our sister state agencies to build a successful offshore wind industry in New Jersey.”
Wind industry advocates hold out hope that momentum can be maintained in some states.
“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,” said Liz Burdock, president of the Oceantic Network. “That supply chain has seen over $25 billion in investment, over 64% of which has gone to Republican (congressional) districts.”
With approvals obtained during the Biden administration, three projects are under construction “and seven more have completed their environmental reviews,” said Burdock. “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.”