The Atlantic Shores Offshore Wind Project: A Failed Venture
The New Jersey Board of Public Utilities (BPU) recently made the decision to pull the 2021 offshore wind renewable energy certificate order for the Atlantic Shores project, effectively ending the project’s status as a qualified offshore wind project.
This decision came after Atlantic Shores Offshore Wind, a joint venture between Shell New Energies and EDF Renewables, filed a request to cancel its wind project off the coast of Atlantic City. Despite having received federal approval for various aspects of the project, including construction and operations plans, offshore surveys, and supply agreements, the company decided to pull the plug on the project.
One of the main reasons cited for the cancellation was the opposition to wind energy by the Trump administration, as well as the escalating costs associated with developing offshore wind projects. The Presidential Wind Memorandum was identified as a major obstacle to the project’s viability.
In addition, Shell’s decision to withdraw from the project in February, along with significant impairments for both Shell and EDF Renewables, further contributed to the project’s downfall. The Trump administration’s withdrawal of an air quality permit in March was the final blow to the project.
The BPU agreed with the company’s assessment that the project was no longer viable under the current conditions and decided to terminate the offshore wind renewable energy certificate. The Board stated that the project would not be completed on schedule and that vacating the certificate was in the best interest of the public.
Atlantic Shores was initially planned to be developed in two phases, with a total capacity of 2.8GW. The project would have provided substantial economic benefits to New Jersey and enough clean energy to power over 1 million homes. However, due to a combination of external factors and financial challenges, the project will not come to fruition.
It is a disappointing outcome for the Atlantic Shores Offshore Wind Project, which held great promise for the region. The cancellation serves as a reminder of the complexities and uncertainties involved in large-scale renewable energy projects.