Ørsted CANCELS New Jersey Wind Farm

Ørsted CANCELS New Jersey Wind Farm

In a significant strategic move, Ørsted, a global leader in renewable energy, has announced the cessation of development for Ocean Wind 1 and Ocean Wind 2 projects in the United States.

This decision comes as a result of a comprehensive review of Ørsted’s U.S. offshore wind portfolio, and it reflects changing macroeconomic factors.

The announcement came in a press release that was put out sometime late yesterday, October 31st, 2023.

Ørsted said While the discontinuation of these projects is disappointing, they are taking a resolute step forward by committing to the Revolution Wind project.

Ørsted’s decision to halt the development of Ocean Wind 1 and Ocean Wind 2 projects is driven by the shifting macroeconomic landscape. High inflation, rising interest rates, and supply chain bottlenecks have significantly impacted the feasibility and long-term capital investments of these projects.

David Hardy, Group EVP and CEO Americas at Ørsted, expressed the company’s disappointment and gratitude for the support received from New Jersey and local leaders in the development of these offshore wind energy projects.

There was major push back from residents and officials in South Jersey which has stalled much of the progress of the Ocean Wind 1 and Ocean Wind 2 projects.

Situated off the coast of Ocean City and could be seen from Atlantic City to Wildwood.

The proposed Ocean Wind 1 project was set to become New Jersey’s inaugural offshore wind farm, with the capacity to supply electricity to approximately 500,000 households, as reported on the project’s website. This initiative was designed to incorporate 98 wind turbines, strategically positioned 15 miles off the southern coast of New Jersey.

Initial construction preparations were slated to commence during the upcoming autumn, and the project was anticipated to become operational by the year 2025.

During the past preparations, whales had been washing up frequently on New Jersey beaches which had the public demand a pause until testing was done to make sure that these whales weren’t being hurt due to sonar activity.

Ocean Wind 2, a project of comparable scale, was likewise planned for placement off the southern New Jersey coastline and had a scheduled commencement in 2028.

This endeavor was poised to be a key contributor to the state’s ambitious targets, aiming to install 7,500 MW of offshore wind capacity by 2035 and transition to 100 percent clean energy by 2050. With a robust capacity of 1,148 MW, Ocean Wind 2 was anticipated to provide energy to over half a million New Jersey residences.

In his official statement, David Hardy, the Group EVP and CEO Americas at Ørsted, expressed his deep disappointment over the necessity of this decision. He specifically highlighted the missed opportunity, noting that New Jersey had the potential to become a prominent hub for offshore wind energy, not only in the United States but on a global scale.

He also extended his gratitude to Governor Murphy and the dedicated New Jersey state and local leaders who had provided vital support for these projects, emphasizing their pivotal role in advancing American renewable energy initiatives and fostering job creation in the region.

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While this news is just breaking, those on social media are expressing their excitement for the cancelation as many were not happy with the visuals of the project.