In another blow for offshore wind industry, EDA announces it is exploring alternative uses for N.J. Wind Port

Facility, which broke ground amid much fanfare in 2021, was to serve as major economic driver of sector in state

In a sign of the struggling times for the offshore wind industry in the state and the country, ROI-NJ has learned that N.J. Economic Development Authority CEO Tim Sullivan Monday said the organization is exploring alternative uses for the New Jersey Wind Port currently being built in Lower Alloways Creek in Salem County.

“In light of the significant uncertainties in the offshore wind market, we have decided to accelerate our strategic review of options and alternatives for the New Jersey Wind Port,” Sullivan said in a statement.

The Board of Public Utilities, heavily influenced by Gov. Phil Murphy, added a second crippling blow later Monday, saying the state would not accept any of the bids for the fourth solicitation of offshore wind, essentially ending any hope of the Atlantic Shores project (see full story here).

The announcement is not surprising.

The changing economics of the industry have made it increasingly difficult for offshore wind to develop as scheduled. The inauguration of President Donald Trump, far from a supporter of clean energy alternatives, has cast doubt on the viability of offshore wind in the U.S., too.

The industry’s challenges in New Jersey, however, predate Trump.

Orsted pulled out of New Jersey in October of 2023 and Atlantic Shores still awaits the results of a rebid on its project, a necessary step for it to move forward, the group has said. Last week, Shell, a partner in the Atlantic Shores project, indicated it was walking away from the N.J. effort, taking a $1 billion write-off in the process.

Sullivan said the EDA makes being a steward of taxpayer dollars its first priority – and, in accordance with that, has been re-evaluating the situation for more than a year.

“While recent developments at the federal level and announcements from offshore wind developers are deeply disappointing, they were not unexpected,” he said. “We have taken a cautious approach to further development of the port since 2023, and we have worked to identify alternative uses that would maximize the economic development, job creation, and financial potential of the site for the state.”

At this point, it is unclear if any alternative uses have been identified.

The N.J. Wind Port has been a symbol of the potential of the sector in the state since it broke ground in the fall of 2021.

The belief was that the port would provide a location for essential staging, assembly and manufacturing activities related to offshore wind projects not just in New Jersey but along the East Coast – making N.J. an industry leader.

In 2022, the state purchased a 109.4-acre property from a subsidiary of PSEG Power toward that aim.

At the time, EDA officials said the goal was to create up to 1,500 manufacturing, assembly and operations jobs and drive billions of dollars in economic growth back into the New Jersey economy.

Monday’s announcement by the EDA makes that scenario increasingly unlikely – and certainly no longer on a timetable.

Sullivan, in his statement, said the EDA still believes in the industry but that it must pivot at the present time.

“We remain believers in the long-term potential of offshore wind for New Jersey, but our role as stewards of taxpayer resources requires us to evaluate all of our options,” he said. “We will continue to provide further updates as this evolves.”