The New Jersey Board of Public Utilities has canceled the bidding process for the state's fourth offshore wind solicitation. This decision comes amid uncertainties caused by recent federal actions impacting the industry.
Initially, three companies were interested in the fourth solicitation, which invites proposals from developers eligible for state financial support. However, only Atlantic Shores remained after two bidders withdrew.
BPU President Christine Guhl-Sadovy explained that Shell's withdrawal as an equity partner in the Atlantic Shores project and uncertainty from federal actions influenced the decision to cancel. "A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and backing away from the American clean energy market, as well as uncertainty driven by federal actions and permitting," she said.
The Atlantic Shores project planned to build two wind farms off the coast of Atlantic City. Although it received necessary permits during former President Joe Biden's administration, new executive orders under President Donald Trump have complicated matters. These orders temporarily withdraw federal waters from offshore wind development and pause new permits and loans for such projects.
Shell exited its partnership in Atlantic Shores due to misalignment with its return goals and regulatory considerations. The company recorded a $1 billion write-off related to this project in its Q4 earnings report.
Atlantic Shores CEO Joris Veldhoven expressed disappointment over BPU's decision but reaffirmed commitment to offshore wind. “We’re discouraged to see the conclusion of this solicitation without an awarded project,” he stated.
Governor Phil Murphy supported BPU’s move, citing significant challenges facing the offshore industry. “Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity... However, now is the time for patience and prudence,” Murphy said.
The New Jersey Economic Development Authority (NJEDA) is considering alternative uses for the New Jersey Wind Port under construction in Salem County due to these uncertainties. NJEDA's Sullivan noted their cautious approach since 2023 while exploring options that maximize economic benefits for New Jersey.
