Shell Writes Off Nearly $1 Billion, Withdraws from US Offshore Wind Farm

By William Mathis and Mitchell Ferman (Bloomberg)

Shell Plc has announced a significant write-off of almost $1 billion and its withdrawal from a US offshore wind farm amid President Donald Trump’s efforts to hinder the industry’s progress with executive orders.

This decision reflects the challenges faced by the American offshore wind sector, which had seen support from former President Joe Biden but encountered escalating costs in recent years. With Trump in power, developers now confront additional obstacles with a president actively working to impede the industry’s growth.

During its quarterly earnings report, Shell revealed a $996 million impairment related to the Atlantic Shores offshore wind farm, which had received final federal approval from the Bureau of Ocean Energy Management (BOEM) under the Biden Administration.

“We just don’t see that it fits both our capabilities nor the returns that we would like,” said Chief Financial Officer Sinead Gorman. “So we took the decision to effectively write that off and pause our involvement.”

Shell had been developing the project in collaboration with the renewables arm of Electricite de France SA.

Despite Shell’s retreat, EDF Renewables expressed confidence in the Atlantic Shores project’s future, emphasizing its potential to contribute to America’s energy strategy and economy. The project aims to provide essential energy resources and job opportunities in New Jersey and beyond.

President Trump’s recent actions, including executive orders targeting offshore wind development, have further complicated the industry’s landscape. Trump’s collaboration with New Jersey Congressman Jeff Van Drew, a vocal opponent of the Atlantic Shores project, has added to the challenges faced by developers.

Shell’s shift away from offshore wind aligns with CEO Wael Sawan’s strategic direction, focusing on projects that offer higher returns compared to oil and gas investments. The company’s participation in offshore wind initiatives had been part of a broader trend among European oil majors, but under Sawan’s leadership, Shell is prioritizing cost-effective ventures.

The Atlantic Shores joint venture’s substantial investment in leasing offshore wind sites underscores the industry’s potential, but rising interest rates and supply chain disruptions have increased costs, impacting the feasibility of such projects.

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