NJ Terminates Orsted Offshore Wind Projects

NJ Terminates Orsted Offshore Wind Projects

The New Jersey Board of Public Utilities (NJBPU) has officially terminated its approval of the Ocean Wind One and Ocean Wind Two offshore wind projects, owned by the Danish company Orsted.

The decision follows legal challenges from Cape May County, which had strongly opposed the projects on environmental and economic grounds.

Cape May County’s lawsuits, filed in both the New Jersey Appellate Division and Federal District Court, questioned the validity of the NJBPU’s orders approving the projects. Today, those orders have been vacated, rendering them null and void.

In a settlement with the State of New Jersey, Orsted agreed to relinquish $175 million in escrow funds in exchange for the cancellation of the approvals.

Cape May County Commission Director Len Desiderio hailed the decision as a major victory in the fight against what he describes as “environmentally destructive offshore wind projects.”

He emphasized the potential dangers these projects pose, citing recent incidents in Nantucket, Massachusetts, where a turbine blade from a similar offshore wind project disintegrated, releasing hazardous materials into the ocean.

“The vacation of these orders by the NJBPU makes it much more difficult for Orsted or any other company to use these lease areas near Cape May County beaches,” Desiderio stated. “We have seen the devastating effects in Nantucket, where a single turbine blade failure led to tons of industrial waste polluting the ocean and closing beaches. We cannot allow that to happen here.”

The incident in Nantucket involved a 115,000-pound turbine blade, which, after breaking apart, contaminated the local environment with fiberglass, foam, and industrial adhesive.

Cleanup efforts are ongoing, with workers in hazmat suits collecting debris from miles of coastline. The economic impact on the local tourism industry has been severe, with multiple beach closures disrupting the peak summer season.

Michael Donohue, a former New Jersey Superior Court Judge and Special Counsel for Offshore Wind for Cape May County, believes that the county’s persistent opposition played a crucial role in Orsted’s decision to abandon the Ocean Wind projects.

He also suggested that the NJBPU’s actions could have broader implications, potentially invalidating Orsted’s federal permits.

“We’re confident that our efforts, alongside our partners in the fishing and tourism industries, contributed to Orsted’s decision,” Donohue said. “We continue to pursue our cases in both the Appellate Division and Federal Court to address remaining constitutional and conflict-of-interest concerns.”

Cape May County is also supporting the City of Brigantine in its opposition to the Atlantic Shores offshore wind project, located just eight miles off Brigantine’s coast.

Also See: Cape May’s “Fish House” Opens This Week at Sunset Beach!

Donohue warned that a similar turbine failure at Atlantic Shores could have catastrophic consequences for Cape May County, with debris likely washing ashore due to prevailing ocean currents.

This isn’t the last of the wind farms off our coast though.

In the beginning of this year, the New Jersey Board of Public Utilities approved two new wind projects by Leading Light Wind and Attentive Energy Two and last month Atlantic Shores Offshore Wind South Project was approved by The  Department of the Interior

Leading Light Wind is a 2.4-gigawatt offshore wind project planned for more than 40 miles off the New Jersey coast. It will be the second-largest offshore wind farm in the U.S., following a 2.6-GW project off Virginia set to begin construction later this year.

Attentive Energy Two, another offshore wind project, will generate 1.3 gigawatts and be located 47 miles off the New Jersey coast. This initiative is a joint venture involving TotalEnergies, the French oil giant, along with Rise Light & Power and Corio Generation

Atlantic Shores Offshore Wind, LLC is a 50:50 partnership between Shell New Energies US LLC and EDF Renewables North America. The Atlantic Shores South project is located in Lease Area OCS-A 0499 located approximately 8.7 miles off the coast of Atlantic City. it should be noted that there is also another leased section by this same company just north of this called “Atlantic Shores North.”

These projects could also be hit with lawsuits like the others.

As the legal battles continue, Cape May County remains steadfast in its commitment to protecting its coastline from the potential risks posed by offshore wind projects.

Let us know if you think these projects should move forward.