New Jersey’s first offshore wind farm dealt significant blow from state board after Trump’s attacks

New Jersey’s Board of Public Utilities, or BPU, on Monday mentioned it could not award any new wind initiatives, the most recent wallop to the state’s large plans for the renewable power supply since President Donald Trump took workplace final month.

The transfer raises questions on whether or not the Atlantic Shores mission, slated to be the state’s first wind farm, will ever be constructed.

The BPU’s resolution got here after world power large Shell introduced final week that it had withdrawn from Atlantic Shores, which was anticipated to construct lots of of generators that may mix to ship 2,800 megawatts of electrical energy, roughly sufficient to serve multiple million properties.

Shell’s announcement adopted an govt order Jan. 20 that briefly banned offshore wind.Shell was a 50-50 companion with EDF Renewables in Atlantic Shores. Later that day, Trump straight attacked New Jersey’s efforts to construct a wind farm on social media.

The BPU cited “uncertainty driven by federal actions” in its resolution.

Christine Guhl-Sadovy, BPU president, mentioned that the board concluded “despite the manifold benefits the industry offers to the state, it would not be a responsible decision at this time.”

‘Important challenges’

N.J. Gov. Phil Murphy, who made offshore wind a cornerstone of his formidable targets for renewable power, on Monday cited offshore wind “as a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence.”

He continued, “However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence … and I hope the Trump administration will partner with New Jersey to lower costs for consumers, promote energy securityand create good-paying construction and manufacturing jobs.”

It was unclear whether or not any offshore wind initiatives, together with Atlantic Shores, would ever be in-built New Jersey in coming years or in any respect. Nevertheless it seems unlikely some other initiatives in New Jersey’s offshore wind pipeline might transfer ahead, on condition that none, aside from Atlantic Shores, had obtained the required federal permits.

Trump has vowed to position federal regulatory hurdles in entrance of any future offshore wind initiatives, together with a everlasting ban.

Atlantic Shores “stands ready to deliver on the promise of offshore wind to achieve American energy dominance, grow the economy, and protect the environment,” firm CEO Joris Veldhoven mentioned Monday in a press release to The Inquirer.

Veldhoven mentioned he was “discouraged” by the BPU’s motion, particularly on condition that Atlantic Shores has already obtained key federal permits to proceed, together with one for environmental impression and one for building.

“We look forward to working together during this dynamic and evolving landscape to identify future … opportunities to serve millions of homes with safe, reliable, renewable power,” Veldhoven mentioned.

What did the BPU do?

The BPU didn’t cancel the Atlantic Shores mission outright however made it troublesome for it to proceed.

The BPU has gone via 4 rounds of what it calls wind solicitations—proposals by wind power builders to construct initiatives that may meet state-specified capacities.

The BPU had awarded Atlantic Shores wind solicitations for 2 wind farms, generally known as Atlantic Shores 1 and a pair of, in prior wind solicitations.

Final 12 months, the board opened a fourth spherical of wind solicitations that got here throughout a financially shaky time for the trade.

Danish offshore wind developer Orsted pulled out of its New Jersey mission in 2023, citing increased than anticipated prices and provide chain points. So there was much less curiosity for New Jersey’s fourth spherical of solicitations. Of three bidders, two withdrew.

Atlantic Shores was the remaining bidder however had mainly repackaged its beforehand accepted initiatives to make them extra financially tenable given inflation and provide chain points.

On Monday, the BPU canceled the fourth spherical that Atlantic Shores was relying on.

Nonetheless, the corporate famous on Monday that it nonetheless has an settlement with the BPU in place for Atlantic Shores that grants priceless Offshore Wind Renewable Power Certificates (ORECs).

‘Drill, child, drill established order’

Regardless, the BPU’s resolution dismayed environmental teams that hoped offshore wind would assist with local weather change.

“The NJ Sierra Membership is deeply disillusioned to see the Atlantic Shores project not transferring ahead,” mentioned New Jersey Sierra Membership director Anjuli Ramos-Busot. “Once again, fossil fuel companies have taken favor from the Trump administration to continue with the drill, baby, drill status quo. Are we surprised?”

Ed Potosnak, govt director of the New Jersey League of Conservation Voters, mentioned the BPU resolution would value New Jersey hundreds of jobs whereas leaving residents with dirtier air.

“We are deeply disappointed in the decision by Gov. Murphy and his administration to cancel the fourth round offshore wind solicitation because it plays right into the hands of Donald Trump, who wants to stick New Jersey families with dirty air and expensive oil and gas energy to further enrich his billionaire friends,” Postnak mentioned.

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