The Board of Public Utilities said Monday that it will not award any of the bids from the state’s fourth offshore wind solicitation, essentially ending the Atlantic Shores project – and seemingly finishing an offshore wind industry that Gov. Phil Murphy had long hoped would be a leader in his efforts to increase clean energy use in the state.
And while the decision came from the BPU, the governor certainly influenced its outcome.
“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence. This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy solutions,” Murphy said.
“However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence. I support the BPU’s decision on the fourth offshore wind solicitation, and I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”
The BPU’s announcement came moments after EDA CEO Tim Sullivan said the organization is seeking alternative options for the N.J. Wind Port in Salem County – what was supposed to serve as an economic driver for the industry and the state. (See full story here)
It comes less than a month after President Donald Trump returned to the White House – doing so with little support for offshore wind or other clean energy initiatives. It also comes less than a week after Shell, a co-partner in the Atlantic Shores project, announced it was pulling out.
The Board of Public Utilities had delayed an announcement on the fourth solicitation – some expected it to come by the end of 2024. The reasons were numerous, including this: What started as three bids was reduced to just one (from Atlantic Shores) after Trump was re-elected – a result that seemingly assured that the federal funding needed for such projects was not likely to come.
BPU President Christine Guhl-Sadovy said the decision was a result of the times.
“A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and backing away from the American clean energy market, as well as uncertainty driven by federal actions and permitting,” she said. “The board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time.”
If this is the end for offshore wind in New Jersey, it comes after a years-long wind down for an industry that seemingly had so much promise.
The industry, which has been struggling to find its financial footing around the world since the pandemic reset the supply chain and energy use scenarios, never was able to find a financial path forward in New Jersey.
In the fall of 2023, Orsted pulled out of its projects in the state, citing financial difficulties.
Atlantic Shores kept pushing forward, but said it needed the state to accept the rebid of its project for it to be able to move forward. The fourth solicitation was their effort to do just that.
Where the industry goes from here is unclear. Waiting four years for another administration does not make any financial sense. Then there’s this: There is no guarantee that the next president will be a supporter of the sector.
Guhl-Sadovy said the BPU still supports the industry – without offering a clear path forward.
“Offshore wind still represents a once-in-a-generation economic development opportunity and is key to helping the region and country achieve energy independence,” she said. “The board is committed to working with Governor Murphy and our sister state agencies to build a successful offshore wind industry in New Jersey. We are also deeply appreciative of Atlantic Shores’ work and their commitment to providing a cleaner and healthier future.”
Atlantic Shores CEO Joris Veldhoven said the company still hopes to move forward.
“Atlantic Shores stands ready to deliver on the promise of offshore wind to achieve American energy dominance, grow the economy, and protect the environment,” he said.
“We’re discouraged to see the conclusion of this solicitation without an awarded project. Atlantic Shores Project 1 holds distinct advantages of an advanced permitting program, existing supply chain investments already putting people to work, a mature interconnection plan, and a clear path to financing that made us the most competitive and deliverable project proposed in NJ4.”
Veldhoven said the state’s effort on clean energy have an even greater challenge.
“The governor’s commitment to reaching 100% clean energy by 2035 is genuine and commendable,” he said. “Today’s announcement clearly puts this goal at risk.
“We look forward to working together during this dynamic and evolving landscape to identify future offtakes and opportunities to serve millions of homes with safe, reliable, renewable power.”
