Atlantic Shores Offshore Wind Project Terminated in New Jersey

Atlantic Shores Offshore Wind has terminated its 1.5-gigawatt offshore wind project in New Jersey, marking a significant setback for the U.S. offshore wind industry amid mounting federal opposition.

The project, which would have powered more than 700,000 homes, fell victim to a series of aggressive policy measures by the Trump administration aimed at dismantling the domestic offshore wind sector.

The administration’s actions included an executive order halting all offshore wind leasing nationwide, substantial staff reductions at the U.S. Bureau of Ocean Management, and the rescinding of federal permits for the Atlantic Shores project off Atlantic City’s coast. Adding to these challenges, pending budget reconciliation legislation threatens to eliminate tax incentives for offshore wind deployment.

Jason Walsh, Executive Director of the BlueGreen Alliance, condemned the administration’s actions: “Trump continues trying to destroy the future of offshore wind in the United States. The potential of this clean power source is being realized around the world, but because of President Trump’s sabotage, our country is sacrificing good jobs, lower energy prices, and benefits to countless communities in New Jersey and across the country.”

The Bureau of Ocean Energy Management (BOEM) auctioned Lease OCS-A 0499 in 2015 and approved the Atlantic Shores South Construction and Operations Plan in October 2024, authorizing two wind facilities that could generate 2,800 megawatts combined.

The developer, a unit of EDF Renewables North America, had invested hundreds of millions in pre-construction work, including permits, interconnection agreements, supply-chain contracts, community support, and workforce development. The project also faced major setback earlier this year when Shell withdrew as a partner in January 2025, taking a $996 million impairment.

Further complications arose when the Environmental Protection Agency suspended key permits for the project in response to a January 21 Executive Order from President Trump, effectively withdrawing the Clean Air Act permit issued in September 2024 to reassess the project’s environmental impacts. Prior to the suspension, the project had secured approval for up to 200 wind turbines with a potential capacity of 2,800 megawatts.

The developer’s formal petition to the New Jersey Board of Public Utilities cited multiple challenges, including soaring inflation and supply chain disruptions. However, the federal freeze on offshore wind permitting initiated by the Trump Administration in January proved to be the decisive factor.

“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,” said Atlantic Shores CEO Joris Veldhoven.

The cancellation poses a significant threat to New Jersey’s clean energy ambitions, which include a target of 11 gigawatts of offshore wind electricity by 2040 – planned to represent 30% of East Coast wind energy production.

The impact of President Trump executive action extends beyond New Jersey. The Empire Wind project offshore New York recently experienced a month-long suspension following a stop work order from the Trump Administration on April 16th over what Interior Secretary Doug Burgum alleged were concerns over the previous Biden Administration’s regulatory approval process.

Despite these challenges, this $5 billion project, designed to power 500,000 New York homes by 2027, remains 30% complete and construction has since continued.