Just weeks after Shell plc pulled out of the Atlantic Shores joint venture to produce 2,800 megawatts of electric power from offshore wind, its partner, the French energy giant EDF Group, announced it is taking a 940 million euros write-down in the value of the project.
EDF Renewables, a New York-based subsidiary of EDF Group, said following the write-down: “We maintain the belief that the Atlantic Shores projects will be important contributors to New Jersey’s coastal economy, and the broader offshore wind supply chain, while also supplying essential power necessary for New Jersey’s growth.”
Atlantic Shores became the leader in the state’s offshore wind efforts when the Danish firm Orsted pulled out of its commitment to the Ocean Wind project off the coast of Cape May County in the fall of 2023.
Higher than expected costs, opposition from Jersey Shore community groups and local governments, and legal battles with commercial fishermen all affected the financial attractiveness of the projects, as did the hostility of the Trump administration to such efforts.
The two planned Atlantic Shores wind farms, off the coast of Long Beach Island and Atlantic City, were seen as central to outgoing Gov. Phil Murphy’s goals for renewable energy contributions to the state’s energy future.
A related action just prior to the EDF announcement was the decision by the New Jersey Board of Public Utilities Feb. 4 to cancel its new solicitation for offshore wind farm leases, which would have allowed Atlantic Shores to submit an updated bid for its lease areas. The company said, “We are discouraged to see the conclusion of this solicitation without an awarded project.”
The statement added: “The governor’s commitment to reaching 100% clean energy by 2035 is genuine and commendable. This announcement clearly puts that goal at risk.”
Atlantic Shores received its final federal approvals in October 2024. The wind projects were to be built in federal waters nine miles off the New Jersey coast. Plans called for up to 200 wind turbines, offshore substations and high-energy cables that would transmit the electricity to a grid interconnection point onshore.
The project met other headwinds when the Atlantic City Council on Feb. 6 unanimously repealed the ordinance that would have allowed the power cables from offshore to run across the city. The repeal came in response to a petition with sufficient signatures to force the question to the November ballot.
Just one month ago, prior to the EDF decision, Atlantic Shores reacted to the Shell pullout by reaffirming its commitment to New Jersey’s first large-scale offshore wind project.
With Atlantic Shores having its last remaining partner so significantly writing down the value of the effort, it is unclear where the project goes from here. The Atlantic Shores website had no statement posted on the EDF decision, and emails requesting comment have gone without reply.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
