Energy giant Shell has withdrawn from the Atlantic Shores offshore wind project, raising new uncertainty for New Jersey’s renewable energy plans.
Shell’s decision, announced during a quarterly earnings call, marks the latest setback in the state’s push for offshore wind. The company cited financial concerns, stating that the project no longer aligns with its capabilities or expected returns. Shell will take a nearly $1 billion write-off on the venture.
Atlantic Shores, a joint venture between Shell New Energies U.S. and EDF Renewables, remains committed to the project. The company said it will continue advancing New Jersey’s first offshore wind farm in compliance with state and federal agreements. The project, located 10 to 20 miles off the coast between Atlantic City and Barnegat Light, is designed to generate 1,510 megawatts, enough to power 700,000 homes.
New Jersey Gov. Phil Murphy reaffirmed the state’s commitment to offshore wind despite Shell’s exit. “I remain committed to advancing my administration’s environmental and clean energy priorities,” Murphy said in a statement, adding that offshore wind would bolster energy independence and create jobs.
The withdrawal follows last year’s exit of Danish wind developer Ørsted from two planned offshore wind projects in New Jersey, citing inflation and supply chain issues. Meanwhile, President Donald Trump’s recent executive order has placed a temporary ban on offshore wind leases and approvals, adding further uncertainty to the industry. Trump has called the projects a “disaster” and vowed to halt their progress.
Local opposition to offshore wind has also intensified. U.S. Rep. Jeff Van Drew (R-N.J.), a vocal critic of the industry, welcomed Shell’s decision, calling it “another major blow to the offshore wind scam.” Some coastal communities have raised concerns about potential environmental impacts and visibility of turbines, though federal agencies have found no direct link between wind projects and marine mammal deaths.
The state has invested heavily in offshore wind infrastructure, including a $250 million port in Paulsboro designed to support turbine assembly. The economic implications of Shell’s withdrawal remain unclear, but industry officials warn of delays and financial risks for workers and businesses tied to the sector.
Despite the challenges, Atlantic Shores maintains that it will move forward. “Business plans evolve, and our shareholders have always prepared long-term strategies,” a company spokesperson said.
New Jersey has set a goal of achieving 100% clean energy by 2050, with offshore wind as a key component. Whether the state can meet its targets amid shifting financial and political landscapes remains uncertain.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.
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