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New Jersey takes giant step back from offshore wind following White House moves, Shell pullout 

Credit:  Wayne Parry · Feb. 3, 2025 · pressofatlanticcity.com ~~

New Jersey took a big step back from its strong support of offshore wind power Monday, ending its latest round of project solicitations without approving a new one, and saying it is looking for other uses for its offshore wind port, a state-funded manufacturing site that was designed to build equipment for the struggling industry.

In a pair of rapid-fire announcements, the New Jersey Board of Public Utilities said Monday it was ending the state’s fourth round of solicitation for new offshore wind projects without choosing any additional ones.

The board said three projects had submitted bids, but two of them withdrew already. That left only Atlantic Shores, which was stung last week by the withdrawal of Shell as one of its two partners.

The state’s second announcement was that it would look for uses other than offshore wind for the New Jersey Wind Port, a government-funded facility in Hancocks Bridge in Salem County.

The project’s website says Gov. Phil Murphy “has committed over $637 million towards the NJWP, representing the largest single investment in offshore wind by any state.”

Taken together, the announcements represent a body blow to an industry that was already reeling from project cancellations, delays and, most significantly, a move by President Donald Trump to halt all new wind energy projects and look for ways to kill existing ones.

“This is the second major victory for offshore wind opponents in New Jersey,” said Robin Shaffer, president of Ocean City-based Protect Our Coast NJ, an anti-offshore wind group.

“One cannot deny the effect Donald Trump has had on the wind industry in the 12 days since he took office,” Shaffer said. “On Inauguration Day, he signed an executive order declaring an energy emergency, and sowing major uncertainty in the industry at home and abroad.

“The entire offshore wind scheme is unraveling before our eyes,” Shaffer said. “We applaud the NJBPU for taking the only rational step at this time. We hope they will move on from the radical energy goals of Governor Murphy and focus on protecting New Jersey ratepayers, as is their responsibility.”

Murphy, who has pushed to make New Jersey the East Coast leader in offshore wind, acknowledged the new realities in a statement Monday.

“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,” he said. “This is especially critical during a time when new energy generation is needed to provide our residents and businesses 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,” the Democratic governor said. “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.”

Tim Sullivan, CEO of the New Jersey Economic Development Authority, said the state needs to look for potentially better uses for the South Jersey site given the downturn in offshore wind’s fortunes.

“In light of the significant uncertainties in the offshore wind market, we have decided to accelerate our strategic review of options and alternatives for the New Jersey Wind Port,” he said. “While recent developments at the federal level and announcements from offshore wind developers are deeply disappointing, they were not unexpected.

“We have taken a cautious approach to further development of the port since 2023, and we have worked to identify alternative uses that would maximize the economic development, job creation, and financial potential of the site for the state,” Sullivan said. “We remain believers in the long-term potential of offshore wind for New Jersey, but our role as stewards of taxpayer resources requires us to evaluate all of our options.”

Several New Jersey environmental groups issued a joint statement Monday in support of offshore wind and its role in moving away from the burning of fossil fuels, which contributes to climate change. They called the moves “a disappointing setback in the state’s journey toward a clean energy future.”

“Now, more than ever, the commitment to clean energy must be maintained,” the groups said. “Given new pushback at the federal level, the role of states in advancing clean energy is more important than ever.”

The statement was issued on behalf of the New Jersey Sierra Club, Green Faith, the New Jersey Sustainable Business Council, Anglers for Offshore Wind Power, the National Wildlife Federation, the New Jersey Work Environment Council, Jersey Renews and the New Jersey Resource Project.

Atlantic Shores was seeking a rebid of a project previously approved by the state and which has numerous federal approvals as well.

Joris Veldhoven, Atlantic Shores’ CEO, said Monday’s actions jeopardize the state’s goal of switching to 100% clean energy within a decade.

“We’re discouraged to see the conclusion of this solicitation without an awarded project,” he said. “Atlantic Shores Project 1 holds distinct advantages of an advanced permitting program, existing supply chain investments already putting people to work, a mature interconnection plan, and a clear path to financing that made us the most competitive and deliverable project.

“The governor’s commitment to reaching 100% clean energy by 2035 is genuine and commendable,” he said. “Today’s announcement clearly puts this goal at risk.”

In October 2023, Danish wind developer Ørsted scrapped two wind farms off New Jersey, saying they were no longer financially feasible, in part because the project did not get as much government subsidies as it wanted.

The New Jersey Offshore Wind Alliance said wind power needs to still happen.

“Launching a new industry is never easy, and we recognize the recent federal policy uncertainty has made it even more challenging,” the group said. “Despite these obstacles, offshore wind remains an indispensable part of New Jersey’s future electricity mix to ensure increased reliability, a strong American-made economy, and advanced energy independence. The New Jersey Offshore Wind Alliance remains committed to advancing this industry.”

Source:  Wayne Parry · Feb. 3, 2025 · pressofatlanticcity.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

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