The Fate of New Jersey’s Offshore Wind Energy Farm Hangs in the Balance

Recently, the US Environmental Protection Agency (EPA) made a significant decision that could potentially halt the progress of New Jersey’s first offshore wind energy farm. The EPA revoked a Clean Air Act permit that was issued last September, sending shockwaves through the renewable energy industry.

This unexpected turn of events came shortly after US president Donald Trump called for a review of the federal government’s leasing and permitting practices for wind projects. In a move that raised eyebrows, Trump also temporarily withdrew all areas on the outer continental shelf from offshore wind leasing.

Following the presidential memorandum issued in January, an Environmental Appeals Court Judge remanded the permit back to the EPA for further evaluation of the environmental impacts of the wind energy project. This decision has thrown the future of the offshore wind farm into uncertainty.

Atlantic Shores, the project developer, argued against the withdrawal of the permit, stating that there was no “good cause” for such action. However, the EPA proceeded with the withdrawal, citing the need to assess various impacts on birds, wildlife, fishing, and other environmental concerns outlined in the presidential memorandum.

Industry experts have raised concerns about the implications of Trump’s executive order on ongoing wind projects. Even projects that have already commenced construction, such as Vineyard Wind 1, Sunrise Wind, Revolution Wind, Empire Wind 1, and Dominion’s Coastal Virginia Offshore Wind project, could face obstacles due to the new regulatory landscape.

EDF, one of the stakeholders in the Atlantic Shores project, took a significant hit when it wrote down $940 million in the value of its stake in late February. This move, coupled with Shell’s earlier decision to do the same in January, underscores the uncertainty surrounding the project’s future.