Atlantic Shores Offshore Wind has filed to cancel its offshore wind project off the coast of Atlantic City, citing financial volatility and delays in federal permitting. It was poised to be a 1.5-gigawatt wind energy project when finished.
The developer, a partnership between Shell New Energies and EDF Renewables North America, submitted a request to the New Jersey Board of Public Utilities to terminate its Offshore Renewable Energy Certificates (OREC) order. The project had been expected to generate enough electricity to power about 700,000 homes.
The cancellation follows a series of setbacks for the offshore wind sector. Increased interest rates, inflation, and supply chain disruptions have significantly raised project costs. A federal permitting freeze initiated under President Donald Trump further slowed progression. In March, the U.S. Environmental Protection Agency revoked a key air permit for the project, halting construction activity.
In its filing, Atlantic Shores noted that the loss of the permit and broader uncertainty surrounding federal policy forced it to reduce staffing, cancel contracts, and suspend infrastructure investments. Planned development at the New Jersey Wind Port and a new operations facility in Atlantic City were all impacted.
The company had previously rebid the project in the state’s fourth offshore wind solicitation to better align with current economic conditions. That solicitation was ultimately suspended.
Atlantic Shores’ request marks the latest in a series of offshore wind withdrawals in New Jersey. The state’s clean energy targets, including 7.5 gigawatts of offshore wind generation by 2035, remain in place.
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