Atlantic Shores moves to exit New Jersey offshore wind project

A project that was once supposed to establish the Garden State’s first offshore wind farm has filed to terminate.

Atlantic Shores Offshore Wind is a 50/50 partnership between Shell New Energies US LLC and EDF Renewables North America. The entity submitted a June filing to the New Jersey Board of Public Utilities. The document seeks to terminate the Offshore Wind Renewable Energy Certificates (OREC) order for Atlantic Shores Offshore Wind Project 1.

Despite Shell pulling out of Atlantic Shores 1 in January, the company remains a partner of the overall Atlantic Shores organization, according to its website. Slated for construction off the coast of Atlantic City, the project would have provided 1.5 gigawatts of power.

A number of issues have roiled the offshore wind industry — such as higher interest rates, inflation, supply chain challenges and intense local opposition/litigation. Then, an executive order shortly after President Donald Trump took office essentially put most wind projects on pause.

Blowing in the wind?

In March, a key federal permit was also pulled for the project – further clouding its viability. That came on the heels of the NJBPU announcing it would not proceed with an award in its fourth offshore wind solicitation. Atlantic Shores rebid its project in Round 4. The move aimed to better reflect the changing economics of the industry since its initial approval. The NJBPU cited – in part – the uncertainty driven by federal actions and permitting.

NJBIZ recently reported on the setbacks the offshore wind sector has faced. Meanwhile, the broader energy issue has taken centerstage here in the Garden State.

The topic emerged as a key issue on the campaign trail as well as writ large, as a June 1 rate hike takes effect. Last week, Gov. Phil Murphy announced allocating $430 million to offer direct relief to all Jersey ratepayers.

Following the earlier cancellation of Ørsted’s Offshore Wind 1 and 2 projects, Atlantic Shores Offshore Wind Project 1 would have established the state’s first offshore wind farm.

“Due the uncertainty caused by the Presidential Wind Memorandum, the subsequent loss of the Air Permit, and other actions taken by the current administration more generally, Petitioner’s parent company has been forced to materially reduce its personnel, terminate contracts, and cancel planned project investments,” Atlantic Shores wrote in its filing. “The Petitioner has also had to seek a pause to its construction scheduled with the federal government as there has been no indication when or if the essential Air Permit would be reinstated.

“Most recently, this includes cancellation of the ISA and associated upgrades to the regional transmission grid. As a result of the foregoing developments, the Project is no longer viable upon the terms and conditions set forth in the OREC Order.”

Reboot-ready

In a statement, CEO Joris Veldhoven said this filing marks the closing of a chapter. However, it’s not the end for Atlantic Shores.

“Offshore wind continues to offer New Jersey a strong value proposition that includes thousands of good paying jobs, stable power prices and real economic benefits,” Veldhoven told NJBIZ. “While no ratepayer money or subsidy was spent on Atlantic Shores Project 1, this reset period presents us an opportunity to ensure utility customers continue to get a fair deal for critical infrastructure deliver. And with record demand for electricity outpacing supply, one thing’s for sure: New Jersey needs more power generation.

“Atlantic Shores stands ready to deliver high-capacity factor projects that will safeguard American business interests, support energy security, and improve quality of life for millions of Garden State residents.”

The NJBPU did not immediately respond to a request for comment.