Shell Pulls Out of New Jersey’s Offshore Wind Farm
In a significant shakeup to New Jersey’s offshore wind industry, Shell New Energies US LLC has officially withdrawn from the Atlantic Shores Offshore Wind project.
The move, part of a joint venture with EDF-RE Offshore Wind Development LLC, has resulted in a staggering write-off of nearly $1 billion for the company. You can see their announcement here.
Shell Pulls Out of New Jersey’s Offshore Wind Farm
Despite this major setback, Atlantic Shores has reiterated its commitment to delivering New Jersey’s first offshore wind project, Atlantic Shores 1.
The company released a statement emphasizing that large-scale, capital-intensive infrastructure projects undergo changes and that their long-term strategies always consider multiple scenarios.
“While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state, and federal partners under existing leases and relevant permits,” the company stated on its website.
The offshore wind industry in New Jersey has been facing significant hurdles. Shell’s withdrawal follows a similar decision by Danish energy giant Orsted, which previously pulled out of its own offshore wind projects in the state.
These withdrawals have fueled skepticism from critics who argue that the financial and logistical burdens of offshore wind projects outweigh their benefits.
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Congressman Jeff Van Drew, a vocal opponent of offshore wind development along South Jersey’s coast, responded to Shell’s announcement with a statement reinforcing his stance against these projects.
“First Orsted pulled out of these projects, and now Shell is following suit,” Van Drew said.
Ocean Wind 1
“They are beginning to realize what we have been saying all along: these projects are not a practical or viable solution for our energy needs. The promises made by the offshore wind industry were always too good to be true, and even the New Jersey Ratepayer Advocate has acknowledged that these projects would have driven our energy rates even higher than they already are.”
Van Drew also highlighted his collaboration with former President Donald Trump in issuing an executive order that calls for a review of all offshore projects, laying the groundwork for what he describes as a long-term strategy to protect New Jersey’s coastline from these developments.
“While this is a big win for New Jersey’s coastline and our local economy, this fight is not over,” Van Drew added. “I will continue to stand against offshore wind projects off South Jersey’s coast until they are gone for good.”
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With Shell’s exit, the future of offshore wind in New Jersey remains uncertain.
The Atlantic Shores wind project is the only wind project in South Jersey that have federal permits to move forward. If completed it will generate enough energy to power over 700,000 homes.
While Atlantic Shores pushes forward with its plans, industry observers and policymakers will be closely watching how this latest setback impacts the state’s ambitious renewable energy goals.
Do you want to see wind turbines off of our coast?