Atlantic Shores Offshore Wind, the developer behind the 1.5-GW Atlantic Shores 1 wind energy project in progress offshore New Jersey, filed a petition Wednesday asking the state’s Board of Public Utilities to terminate the project’s offshore renewable energy credits and release it from all associated obligations.
The petition cites President Donald Trump’s executive order pausing the development of offshore wind, along with other actions from his administration and the overall macroeconomic environment as reasons that “the project is no longer viable upon the terms and conditions set forth in the [Offshore Wind Renewable Energy Certificate] Order,” which was issued in 2021.
“This is despite Petitioner’s diligent and good faith efforts to advance the Project toward completion as set forth in Section II of this Petition, including submission of a rebid of the Project in the Fourth Solicitation, which was concluded by the BPU without an award,” the petition said.
However, Atlantic Shores Offshore Wind’s CEO Joris Veldhoven said in a Monday release that the project is seeking a “reset period” and that “this filing marks the closing of a chapter, but not the end for Atlantic Shores.”
The project in March had its Clean Air Act permit remanded by the Environmental Protection Agency’s Environmental Appeals Board, an action which Atlantic Shores Offshore Wind argued lacked “good cause.” The board maintained that it has “broad discretion to grant a voluntary remand.”
The uncertainty caused by Trump’s executive order, the project’s loss of its air permit, “and other actions taken by the current administration more generally” mean that the “Petitioner’s parent company has been forced to materially reduce its personnel, terminate contracts, and cancel planned project investments.”
The project was launched as a joint venture between EDF Renewables and Shell. In January, Shell booked a $1 billion impairment associated with the project, which EDF referred to as a “withdrawal” in its annual financial report and which led to NJBPU canceling its fourth offshore wind solicitation. A month later, EDF Renewables booked a $980 million impairment associated with the project.
“While no ratepayer money or subsidy was spent on Atlantic Shores Project 1, this reset period presents us an opportunity to ensure utility customers continue to get a fair deal for critical infrastructure delivery," Veldhoven said. "And with record demand for electricity outpacing supply, one thing’s for sure: New Jersey needs more power generation.”
