Cape May County Ends Legal Battle Over Orsted Offshore Wind Project
In a major development for Cape May County, legal battles surrounding the now-abandoned Orsted Ocean Wind One project have officially come to an end.
After months of state and federal litigation, the County of Cape May and its allies successfully halted the controversial offshore wind initiative, protecting local industries, marine life, and tourism.
Cape May County Ends Legal Battle Over Orsted Offshore Wind Project
Orsted Bows Out of Ocean Wind Projects
On October 31, 2023, Danish energy giant Orsted shocked the region by announcing the immediate cancellation of its Ocean Wind One project—a large-scale offshore wind farm planned off the Cape May County coastline.
Following nearly a year of negotiations with the State of New Jersey, Orsted sought the return of $300 million it had placed in escrow with the New Jersey Board of Public Utilities (NJBPU).
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By July 2024, the state agreed to return $175 million, but not without a condition: the NJBPU would vacate its prior approvals for Orsted’s Ocean Wind One and Ocean Wind Two projects.
This decision, finalized on August 14, 2024, essentially revoked Orsted’s right to build both projects. The New Jersey Attorney General confirmed that these initiatives were no longer “Qualified Offshore Wind Projects” and lacked the necessary authorization to proceed.
Orsted, in its court filings, admitted the projects would never be constructed, officially marking the end of Ocean Wind One.
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Federal Lawsuit Also Dismissed
Cape May County had also filed a federal lawsuit against the Bureau of Ocean Energy Management (BOEM) and other federal agencies, arguing against the wind farm’s impact on the region. In this case, the County was joined by several key partners, including:
- Cape May County Chamber of Commerce
- Clean Ocean Action
- Garden State Seafood Association
- Greater Wildwood Hotel and Motel Association
- Lunds Fisheries
- Surfside Seafood Products, LLC
- LaMonica Foods, LLC
The Department of Justice acknowledged that NJBPU’s cancellation of easements and permits prevented the projects from moving forward. Orsted’s own admissions and filings aligned with these findings, leading all parties to agree to dismiss the County’s federal appeal.
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Local Leaders Declare Victory
Cape May County Commission Director Len Desiderio celebrated the outcome, crediting the County’s determination and the combined efforts of local businesses, activists, and elected officials.
“Thanks to the efforts of Cape May County, its litigation partners, courageous elected officials, and grassroots activists, the threat that the Orsted projects posed to the people and businesses of Cape May County has been stopped,” said Desiderio.
“By Orsted’s own calculation, Cape May County was facing a loss of over $1 billion in tourism revenue. Our fisheries were at risk for millions in losses, and marine life was threatened. After seeing what happened in Nantucket last summer, where beaches were closed due to a disintegrated turbine blade, we should thank God we stopped this.”
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Special Counsel Highlights Turning Point
Former New Jersey Superior Court Judge Michael J. Donohue, serving as the County’s Special Counsel for Offshore Wind, praised the County’s strategy in combating Orsted’s plans.
“We reached a point where Orsted, the Department of Justice, and the New Jersey Attorney General all admitted in court that the Ocean Wind One project is dead,” Donohue explained.
“Orsted’s CEO even admitted that local construction permits turned out to be a bigger risk than anticipated.
The County’s leadership, particularly Commissioner Desiderio, combined with the work of grassroots activists, played a decisive role in stopping the economic and environmental harm these projects would have caused.”
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What’s Next for Offshore Wind?
While Orsted retains its offshore lease areas, the Bureau of Ocean Energy Management has suspended activity on the Ocean Wind One lease for three years.
As of now, no offshore wind developers have submitted plans to use these lease areas, signaling a pause in similar projects for the region.
Additionally, Orsted has indicated it will abandon its Skipjack project off the coast of Delaware, further protecting views from the southern end of Cape May County.