The state’s leading offshore wind developer — the one that already has key federal approvals for two projects, the one that is already working with some of the top construction and development teams in the state, the one that has continued to push forward even after others have pulled out or asked for a pause — is eager to be the poster child the industry so desperately needs in the state.
It just needs to get its projects approved — again — by the New Jersey Board of Public Utilities.
Such is the unique reality for Atlantic Shores Offshore Wind.
The company is moving forward on its work on its Atlantic Shores South project, a combination of Atlantic Shores 1 and Atlantic Shores 2, which would combine to provide 2,800 megawatts of electricity (enough to power 1 million homes) to the state by the end of the decade.
But, it does so while awaiting word from the BPU on whether the rebid of the projects it made this summer during the state’s fourth offshore wind solicitation — rebids necessary because of the economic fallout from the pandemic — will be approved.
CEO Joris Veldhoven said the company has no choice but to proceed — and is eager to do so.
“We plan for success,” he said.
Atlantic Shores certainly is doing all it can do to ensure just that.
In July, it received the all-important record of decision from the Bureau of Ocean Energy Management, the critical government approval needed to proceed. It also hired three New Jersey heavyweights — Jingoli, Creamer Environmental and Riggs Distler — to support the construction of the project’s onshore facilities, starting in the fourth quarter of this year.
All of this means Atlantic Shores South is the most mature offshore wind project in the state, enabling it to be the first one to come online — and, perhaps just as important, enabling it to jump-start other aspects of the industry, including the South Jersey Wind Port.
“We are moving forward,” Veldhoven said. “We’ve already selected those three great New Jersey companies, and there’s still a few more to come in the next few months.”
That’s a good sign, Veldhoven said.
“When developers like us keep moving forward, that’s a sign of a healthy industry,” he said.
Other signs may call that into question.
Eleven months ago, Ørsted pulled out of its two projects — saying economic conditions would not allow them to continue.
Earlier this month, it was revealed that Leading Light Wind — which was selected for a project in January — is asking the BPU for a pause on its project until December, due to supply chain issues.
Veldhoven acknowledges the challenges the industry is facing. It’s the reason why Atlantic Shores is rebidding its project. But, he maintains, the company never slowed in its goal to make its first two wind farm projects operational. In fact, Veldhoven said, it has taken the opposite approach in the past year.
“Over the last 12 months, we didn’t just sit on our hands,” he said. “We were able to keep our foot on the pedal in terms of the technical maturity of the project. We were able to keep the work going on specifics such as the engineering and the design of our transmission cables and our Cardiff substation.
“A lot of well-paid, family-sustaining union jobs at New Jersey companies were created. So, it’s not, ‘We’re theoretically going to create jobs in the future,’ we are creating a lot of jobs right now.”
Thousands more ultimately could be coming — assuming the BPU accepts Atlantic Shores’ rebid.
Veldhoven said Atlantic Shores aims to complete all of its engineering on Atlantic Shores 1 this year and do its financial close — what the industry calls a “final investment decision” — by the end of 2025.
Should it get the go ahead, onshore construction will start almost immediately, with offshore construction beginning in 2027. And the first turbines could be installed by 2029, with the project operational by the end of that year.
Veldhoven is confident Atlantic Shores can hit those goals — which would help the state hit its goal of achieving 100% clean energy by 2035 and 11,000 MW of offshore wind installed by 2040.
“I think New Jersey deserves an offshore wind industry, and offshore wind companies like us, that are doing the things that keep the industry moving forward in good times and in difficult times,” Veldhoven said.
He recently spoke with ROI-NJ on all things offshore wind. Here’s a look at more of the interview, edited for space and clarity.
ROI-NJ: Talk about all the progress the company has made in the past 11 months. Of course, another way to say that is: Talk about the progress that has been made throughout the sector since Ørsted pulled out of the state on Oct. 31, 2023?
Joris Veldhoven: There was definitely a very active response by the governor, the BPU and the (Economic Development Authority) to say: ‘How do we make sure that, despite this big step back, that all the benefits offshore wind can bring do not bypass the state?’
ROI: Talk about those benefits.
JV: For our Atlantic Shores Project One, that means offsetting 4 million tons of CO2 equivalent every year — or 4 million after one year, 8 million after two years, 12 million after three years and so on.
We will be the first customer of the New Jersey Wind Port, which will be great for the state. And, since Atlantic Shores 1 is New Jersey’s first offshore wind project, it will be an important signal from a supply chain perspective, saying, ‘Offshore wind in New Jersey is happening.’
ROI: Some feel the energy created by offshore wind could help spur other high-tech industries to come to the state. Do you agree?
JV: Offshore wind has a scale that very few other renewable energy sources can bring.
Every state wants to attract data centers; we’re hearing that more and more. Their load consumption is significant. And those data centers prefer to have clean, renewable power, because that’s part of the attractiveness that they can bring.
I really think that we can play a big role in helping New Jersey successfully attract these data centers on the back of the abundant, clean energy that offshore wind can provide.
ROI: All this sounds so good … but not to everyone. Why do you think there still is opposition or hesitation here?
About Atlantic Shores
Atlantic Shores Offshore Wind is a 50/50 joint venture partnership between Shell New Energies U.S. LLC and EDF-RE Offshore Development LLC (a subsidiary of EDF Renewables North America).
JV: Offshore wind is not new globally, but it is new in New Jersey and on much of the East Coast. So, there is that nervousness. And, it’s relatively complex. It is a challenge to stay on top of exactly what’s happening, where permits are being given, which companies are being selected, but, because it’s viewed as one industry, we all rise and fall together.
And, when you talk about a big infrastructure project like ours, you always get a range of emotions from, ‘I want to combat climate change’ to ‘These jobs are good,’ to ‘This is the type of industry we want to attract,’ to ‘Why are you doing this or that?’
ROI: How do you address that?
JV: I think it’s up to us to be trustworthy and transparent. We want to really be a trusted partner. Will we not convince every last person that we’re doing the right thing? But, I genuinely believe that, over the course of the next few months and years, you will see a further normalization of the industry and that trust will start to further increase. Some recent polling showed that 60% of coastal residents in New Jersey still support offshore wind. That’s positive.
ROI: On the subject of being transparent, we have to ask this: Other than the rebid, is Atlantic Shores asking for any additional ‘adjustments’ from the state — as Ørsted infamously did?
JV: We are not seeking any legislative support or fixes. That’s not a path we are walking. Of course, we are keeping the Legislature up to speed on developments as a responsible large company in the state should, but we’re not having any specific asks for offshore wind legislation one way or the other.
ROI: Now, the waiting game. The BPU is expected to offer a response to your solicitation/rebid by the end of the year. Are you confident?
JV: There’s optimism here and the team is confident we put our best bid forward.
When we reviewed the guidance, we saw an opportunity to expand and enhance Project 1 in ways that supersede the original board order, provides a fair deal to ratepayers that keeps us competitive for financing with continued shareholder investment and enables us to deliver the abundant economic and environmental benefits of offshore wind to New Jerseyeans.
I think we, the collective we — the governor’s team, the BPU, the EDA and various NGOs, partner organizations and the other developers in New Jersey — have made a lot of progress in the last 12 months. The Atlantic Shores team is eager to bring New Jersey’s first offshore wind project to completion.
I think it’s a big responsibility to deliver offshore wind. And we have a clear responsibility as New Jersey’s first offshore wind project to make sure that common infrastructure supply chains are set up in the right way, so that all the future projects can benefit from that. We look forward to doing that in a transparent and collaborative way.
