The state will not be awarding any contracts as a result of its fourth-round solicitation of bids for offshore wind projects.
Christine Guhl-Sadovy, president of the state Board of Public Utilities, which oversees the process, said, “There were three initial bidders in the fourth solicitation. However, two bidders withdrew, and only Atlantic Shores submitted a best and final offer.”
Since those bids were submitted, Atlantic Shores, a 50/50 partnership between Shell plc and EDF Renewables, saw Shell announce it is “pausing” its relationship with the wind farm project and taking a $1 billion write-off. Atlantic Shores has issued a statement saying it will continue to pursue its Atlantic Shores South project, located off the coast of Atlantic City.
Joris Veldhoven, Atlantic Shores Offshore Wind chief executive officer, said, “We’re discouraged to see the conclusion of this solicitation without an awarded project.”
The state’s decision on the fourth solicitation is in large part a reaction to President Donald Trump’s executive order pausing new and renewed offshore wind leases and permits.
Gov. Phil Murphy said he supports the BPU’s decision not to make an award, saying, “Now is the time for patience and prudence.”
New Jersey Advocates, an organization of eight nonprofit groups that support offshore wind as a major part of the state’s response to climate change threats, called the BPU decision “a disappointing setback in the state’s journey to a clean energy future.”
The New Jersey League of Conservation Voters was also critical of the decision, with its executive director, Ed Potosnak, saying it “plays right into the hands of Donald Trump.”
The announcement came as reports that the state Economic Development Authority is exploring alternative uses for the Salem County Wind Port, an offshore wind manufacturing hub. The wind port had been called the state’s “crown jewel investment” on official state websites, which say that more than $600 million has been invested in the facility.
Five years ago, in February 2020, Murphy announced an aggressive offshore wind solicitation schedule aimed at developing industrial-scale wind farm projects that would contribute 11,000 megawatts of energy by 2040. The plan was to meet goals for electricity generation from renewable sources. Offshore wind was a major part of that strategy for transitioning away from fossil fuels.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.