New Jersey Officially Halts Offshore Wind Contracts Amid Federal Review

In a significant move that signals a potential setback for the U.S. offshore wind industry, New Jersey officials announced on Monday that the state would not be granting awards for new offshore wind contracts. This decision comes in the wake of U.S. President Donald Trump’s order to review the federal offshore wind program, casting uncertainty over the future of the industry.

The New Jersey Board of Public Utilities made the announcement following Shell’s withdrawal as a partner in the only project that had finalized a bid under the state’s latest offshore wind procurement scheme. Citing both Shell’s exit from the Atlantic Shores project and concerns about federal support for the industry, the BPU stated that awarding contracts at this time would not be a responsible decision.

New Jersey, a key player in the nation’s offshore wind sector, has set ambitious goals for renewable energy development. Governor Phil Murphy aims to install 11,000 megawatts of offshore wind capacity by 2040 as part of efforts to promote clean energy and combat climate change.

Challenges Facing the Offshore Wind Industry

This latest development adds to a series of setbacks for the U.S. offshore wind industry, which has grappled with escalating costs, project cancellations, and regulatory hurdles. President Trump’s suspension of new federal offshore wind leasing pending a review has raised doubts about the industry’s viability, with concerns raised about the visual impact of wind turbines, their cost-effectiveness, and potential harm to wildlife.

As part of its fourth solicitation, New Jersey had sought up to 4,000 megawatts of offshore wind capacity, with only one bidder, Atlantic Shores, remaining in the process after two others pulled out. The joint venture between Shell and France’s EDF, Atlantic Shores had received federal approval under the Biden administration and could potentially power 1 million homes if the project moves forward.

Industry Response

EDF Renewables expressed disappointment over the lack of selection in the recent solicitation, blaming the uncertainty created by Trump’s executive order for hindering industry progress. The company emphasized the negative impact on jobs, energy production, and investment resulting from the ongoing regulatory uncertainty.

Despite the setback, Atlantic Shores remains committed to its offshore wind project and is exploring other contract opportunities in the market. While discouraged by the BPU’s decision, the company is determined to press ahead with its plans for offshore wind development.

In conclusion, the future of the U.S. offshore wind industry hangs in the balance as regulatory challenges and political uncertainties continue to shape its trajectory. With New Jersey’s decision to halt new offshore wind contracts, the industry faces a critical juncture in its development, highlighting the need for stability and support to drive sustainable growth and achieve renewable energy goals.

(Source: Reuters – Reporting by Nichola Groom; Editing by Mark Porter, Alistair Bell, and Nia Williams)