On a fourth quarter earnings call Jan. 30, Shell plc told analysts that the company was pausing its involvement in the Atlantic Shores offshore wind farm project. The company said it will take a $956 million write-off.
The Atlantic Shores project was a 50/50 split between Shell and EDF Renewables, an American subsidiary of the French utility EDF Group.
Atlantic Shores immediately posted a statement to its website pledging to “continue progressing New Jersey’s first offshore wind project.” Atlantic Shores took the leadership position in the state’s offshore wind projects when the Danish firm Orsted suddenly pulled out of its commitment to two efforts in October 2023.
A spokesperson for Gov. Phil Murphy said in a statement that the governor remains committed to offshore wind as a renewable energy source. The statement did not mention the Shell announcement.
Despite the pledge to continue development of Atlantic Shores South, Shell’s decision is likely to have a major impact on the two Atlantic Shores projects. The partnership that was Atlantic Shores had plans for two wind farms that were in lease areas that made them the closest such farms on the East Coast, less than 10 miles from land. The location for the wind farms was off the coast between Atlantic City and Barnegat Light.
The Offshore Wind Alliance, an industry-backed organization that promotes offshore wind development, issued a statement saying it will continue to work diligently and in a bipartisan manner to further the pro-business, pro-energy agenda in the state.
Meanwhile, opposition groups like Protect Our Coast, a state group that has fought against the “industrialization” of the coast, celebrated “another setback for the American offshore wind industry.”
The developments come a little over a week after President Donald Trump threw the industry into chaos with an executive order delaying federal permitting and calling for a reevaluation of the environmental and economic impacts of offshore wind projects.
Atlantic Shores South was scheduled to produce 2,800 megawatts of energy beginning in 2028. It has all of its federal approvals and was the project the least impacted by Trump’s executive order pausing review and permitting of projects. The company’s Atlantic Shore North project does not have all its federal approvals and is likely to be more affected by the executive order.
Contact the reporter, Vince Conti, at vconti@cmcherald.com.
