Offshore Wind Farms are STILL Coming to New Jersey

Offshore Wind Farms are STILL Coming to New Jersey

In a recent announcement, Ørsted, a Danish energy company, revealed its decision to withdraw from two ambitious offshore wind projects in New Jersey – Ocean Wind 1 and Ocean Wind 2.

This strategic move has not only dealt a blow to Ørsted but also forced the company to write off a staggering sum of up to $5.6 billion.

The repercussions of this decision extend beyond corporate balance sheets, impacting the Biden administration’s ambitious plans to position the wind industry as a linchpin in the fight against climate change.

The Biden administration has been fervently advocating for renewable energy sources to play a pivotal role in reducing greenhouse gas emissions. However, the setback from Ørsted’s withdrawal raises concerns about the viability of this emerging industry.

The confluence of factors such as high inflation and soaring interest rates has transformed once-promising projects, envisioned as winners just a few years ago, into economically unviable ventures.

This turn of events prompts a critical reassessment of the wind industry’s role in New Jersey’s broader strategy to curb climate pollution. Is the offshore wind sector still a reliable linchpin, or does recent adversity suggest the need for a diversified approach to meet environmental goals?

While the cancellation of Ocean Wind 1 and Ocean Wind 2 may cast a temporary shadow over the offshore wind landscape in New Jersey, it is important to recognize that the industry has not vanished entirely. Beyond the headlines, another company still holds a lease off the coast of South Jersey, Atlantic Shores.

The Atlantic Shores Offshore Wind project represents a collaboration between EDF Renewables North America and Shell New Energies US LLC. This project is positioned approximately 10-20 miles off the coast of southern New Jersey between Atlantic City and Barnegat Light,

This means that its presence is visible from various Jersey Shore towns.

The CEO of Atlantic Shores Offshore Wind, put out a statement on November 8th, that said, “We are actively engaged in conversations with the administration, regulators, and elected leaders across New Jersey that confirms the state’s commitment to offshore wind, and we are working with them to identify viable solutions that will not only preserve the progress made thus far in the industry, but also create a landscape that will enable the successful execution of the Atlantic Shores portfolio.”

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Meaning that they are still planning on bringing their project to fruition sometime in the future.

While an exact completion date remains unspecified, preliminary work is slated to commence next year, with a tentative target for completion in late 2027.