No New Offshore Wind Contracts for New Jersey
February 3, 2025
New Jersey officials on Monday said the state would not grant awards for new offshore wind contracts, a sign that U.S. President Donald Trump's order to review the federal offshore wind program is putting a chill on the industry.
The announcement by the New Jersey Board of Public Utilities comes days after Shell backed out as a partner in the only project that had finalized a bid under the state's latest offshore wind procurement scheme.
In a statement, the New Jersey Board of Public Utilities cited both Shell's withdrawal from the Atlantic Shores project and uncertainty regarding federal support for the industry.
"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," Christine Guhl-Sadovy, president of the BPU, said in the statement.
The announcement is the latest in a string of recent blows to the nascent U.S. offshore wind industry, which has struggled with soaring costs, canceled projects and a high-profile construction accident.
Trump has cast doubt on the industry's future after he suspended new federal offshore wind leasing pending an environmental and economic review, saying wind turbines are ugly, expensive and harm wildlife.
New Jersey is among the nation's top offshore wind states. Governor Phil Murphy has a goal of installing 11,000 megawatts by 2040 as part of his agenda to boost clean energy and combat climate change.
In its fourth solicitation, the state had sought up to 4,000 megawatts of offshore wind capacity. The BPU said two of three bidders had withdrawn from the process, leaving only Atlantic Shores, a joint venture between Shell and France's EDF.
Atlantic Shores received federal approval from the administration of former President Joe Biden last year. If built, the project is expected to be able to generate enough electricity to power 1 million homes.
EDF Renewables said Trump's order was harming industry progress.
"It is disappointing that the recent solicitation concluded without a selection of a project," EDF Renewables spokesperson Sandi Briner said in an email. "The anti-wind executive order has created extraordinary uncertainty that is directly and immediately detrimental to US jobs, energy production and investment."
A spokesperson for Atlantic Shores, which intends to continue with its offshore wind project, said the company was discouraged by the BPU announcement but would look for other contract opportunities.
(Reuters - Reporting by Nichola Groom; Editing by Mark Porter, Alistair Bell and Nia Williams)
