Atlantic Shores Offshore Wind Cancels New Jersey Project, Dealing Blow to U.S. Offshore Wind Industry

Atlantic Shores Offshore Wind has terminated its New Jersey offshore wind project that would have powered more than 700,000 homes—marking another significant setback for the U.S. offshore wind industry.

The developer, a unit of EDF Renewables North America, filed a motion last week to terminate its state-awarded renewable energy certificates previously awarded to the project under New Jersey’s 2021 solicitation. According to the motion, the company had invested hundreds of millions in pre-construction work, including permits, interconnection agreements, supply-chain contracts, community support, and workforce development.

The project’s cancellation follows major setbacks, including Shell’s withdrawal as a partner in January 2025 with a $996 million impairment and the cancellation of New Jersey’s fourth offshore wind solicitation in early February 2025.

The project encountered further obstacles when the Environmental Protection Agency suspended permits in March. Before the suspension, the project had received approval for up to 200 wind turbines capable of generating 2,800 megawatts of power.

President Trump’s administration has taken a strong stance against offshore wind development. On his first day in office, Trump ordered an immediate halt to all offshore wind development on the U.S. Outer Continental Shelf and initiated a comprehensive review of existing projects. The presidential memorandum implements a complete withdrawal of all OCS areas from wind energy leasing, though it was not expected to affect existing lease rights.

In its formal petition to the New Jersey Board of Public Utilities, Atlantic Shores Offshore Wind cited soaring inflation, supply chain disruptions, and—most critically—the federal freeze on offshore wind permitting initiated by the Trump Administration in January. That executive action, followed by the EPA’s revocation of a key air permit in February, effectively halted the project’s progress. Despite investing hundreds of millions into early development, Atlantic Shores states that the regulatory and economic landscape has shifted too drastically to continue under the original terms.

CEO Joris Veldhoven stressed that while this decision marks the end of a chapter, it doesn’t signal the end for Atlantic Shores. “Offshore wind continues to offer New Jersey a strong value proposition that includes thousands of good-paying jobs, stable power prices, and real economic benefits,” Veldhoven stated.

The cancellation threatens New Jersey’s ambitious clean energy goals, which target 11 gigawatts of offshore wind electricity by 2040—planned to represent 30% of East Coast wind energy production. The original timeline had targeted project completion by 2027, with plans to provide 1.5 GW of offshore wind energy.

The Atlantic Shores cancellation comes as other offshore wind projects face similar challenges. The Empire Wind project offshore New York recently resumed construction after a month-long suspension following an abrupt stop work order issued by the Trump Administration on April 16, amid allegations that the previous Biden Administration had rushed the regulatory approval process. This $5 billion project, designed to power 500,000 New York homes by 2027, is currently more than 30% complete.