Gov. Phil Murphy’s office has remained tight-lipped on the issue, though the governor has consistently pushed for environmental and clean energy initiatives. This decision follows a similar move by Danish firm Ørsted, which scrapped its Ocean Wind projects in the face of mounting costs and supply chain disruptions.
Wind farm developer said project will continue despite loss of major investor
by Nikita Biryukov, New Jersey Monitor
January 30, 2025
The developer behind a major New Jersey offshore wind farm said it will continue with the project even after its partner said Thursday it is withdrawing and writing off $1 billion in losses.
Atlantic Shores was in a 50-50 partnership with Shell New Energies to develop a combined 4,310 megawatts of offshore wind capacity in two areas roughly 8.4 miles off New Jersey’s coast. Shell said Thursday it is ending its involvement in the project.
“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,” Atlantic Shores said in a statement.
Shell’s withdrawal comes a little more than a week after President Donald Trump issued a presidential memorandum blocking new leases and permits for onshore and offshore wind projects.
Atlantic Shores South, set to generate 2,800 megawatts as early as 2028, is the only New Jersey offshore wind project still being developed to have obtained all of its federal approvals prior to that order.
Atlantic Shores North, intended to generate 1,510 megawatts, was expected to complete permitting in early 2027, though that timeline stands to be upended by Trump’s memorandum.
A spokeswoman for Gov. Phil Murphy declined to comment on the Shell news and noted only that Murphy has previously said he remains committed to advancing his administration’s environmental and clean energy priorities.
About 15 months ago, Danish wind giant Ørsted announced it would cease development of Ocean Wind 1 and 2, which were each set to generate 1,100 megawatts once completed. The Danish firm said inflation, interest rate hikes, and persistent post-pandemic supply chain issues had cut $2.8 billion from the project’s worth in the first nine months of 2023.
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