Atlantic Shores Offshore Wind Project Request to Cancel Development

Atlantic Shores Offshore Wind, a joint venture between Shell New Energies and EDF Renewables, has filed a request to cancel its wind project off the coast of Atlantic City, New Jersey.

In the request, filed with the New Jersey Board of Public Utilities, the developer cited the Trump administration’s opposition to wind energy and the escalated cost for developing offshore wind projects as reasons for the cancellation.

The project, which was supposed to consist of two phases, faced challenges from the start. The first phase was a 1,510MW project with an estimated $1.9 billion in economic benefits to New Jersey. Combined with the second phase, the project would have included 197 offshore wind turbines capable of powering over 1 million New Jersey homes with a capacity of 2.8GW.

However, the project development encountered a setback when Shell decided to withdraw from the joint venture in February, resulting in a significant impairment for both Shell and EDF Renewables.

Adding to the obstacles, the Trump administration withdrew an air quality permit for the project in March, further complicating the development process.

Recently, Atlantic Shores petitioned the New Jersey Board of Public Utilities to withdraw its offshore renewable energy certificates order, which had initially allowed the project to proceed with development.

The petition stated, “Due to the uncertainty caused by the Presidential Wind Memorandum, the subsequent loss of the Air Permit, and other actions taken by the current administration more generally, [Atlantic Shore’s] parent company has been forced to materially reduce its personnel, terminate contracts, and cancel planned project investments.”