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If you caught the hint of a Bronx cheer echoing from New Jersey on January 30, that was the company Atlantic Shores dismissing the Trump administration’s wind project halt order. Atlantic Shores originated as a 50-50 partnership among two of the largest international energy firms globally, and one of them is determined to continue with 2.8 gigawatts of offshore wind energy in New Jersey.
Offshore Wind Agency To Trump: You Can’t Wish Me Away
High-profile opponents of the President have collapsed like a house of cards, and Atlantic Shores may eventually follow suit. For the time being, however, only one partner in the 50-50 venture, Shell, has conceded. Shell reportedly withdrew on January 30 and discarded its $1 billion investment.
This leaves the other partner, EDF-RE Offshore Development, to stand its ground. EDF-RE operates under the umbrella of a diversified energy firm with a global presence, the French company EDF.
With EDF supporting it, Atlantic Shores may possess the resources to contest the legal authority regarding Trump’s offshore wind cessation, resulting from an executive order impacting projects on federal lands and waters. The onshore wind sector can continue to utilize private property and public lands under non-federal jurisdiction, but the offshore sector is largely reliant on lease areas in federal waters.
“Atlantic Shores is committed to New Jersey and delivering the Garden State’s inaugural offshore wind project,” Atlantic Shores stated in a brief press release published on its website on January 30, after news of Shell’s withdrawal emerged.
“While we can’t comment on the perspectives of shareholders, Atlantic Shores intends to proceed advancing New Jersey’s inaugural offshore wind project and our portfolio in compliance with our obligations to local, state, and federal entities under existing leases and related permits,” they concluded.
Several news organizations also referred to an alternate version of the statement that includes an additional paragraph, indicating that Atlantic Shores is in it for the long haul:
“Business plans, projects, portfolio forecasts, and scopes develop over time — and as is expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that consider multiple scenarios to enable Atlantic Shores to reach its full potential.”
Another Never Give Up, Never Surrender Moment For The US Offshore Wind Industry
CleanTechnica has shared extensive insights on the fluctuations of the US offshore wind industry, with New Jersey serving as a prime example of perseverance through adversity. The state’s offshore industry was set to lead advancements during the Obama administration, only to suffer setbacks under then-Governor Chris Christie’s administration.
Ironically, after Christie departed from office, the Trump administration laid the groundwork for a renewed wave of activity under incoming Governor Phil Murphy. When President Joe Biden assumed office in 2021, he inherited a newly streamlined offshore lease system governed by the Interior Department’s Bureau of Ocean Energy Management. The result was a surge of new offshore leases issued during his administration, including a fresh batch of projects for New Jersey and New York (see much more offshore background here).
Atlantic Shores is not the only offshore wind investor committed to the long game in the New York – New Jersey region. Equinor, for example, has already secured $3 billion in financing towards the development of a vast, 73-acre wind turbine pre-assembly and staging facility in Brooklyn, which is already well underway.
Equinor completed the financing round for the onshore facility despite canceling plans for its Ocean I and II offshore wind farms, indicating that the company is still preparing for a revival of the US offshore industry after Trump leaves office at the turn of 2029.
Meanwhile, the fate of New Jersey’s proposed Wind Port turbine hub in Paulsboro has been uncertain since last year, when the Danish firm Ørsted announced its withdrawal from two wind projects.
Nonetheless, New Jersey has proceeded to lay the foundation for the forthcoming wind energy renaissance. The state has set a target of 11 gigawatts by 2040, long after Trump exits the stage. As of last year, development of the transmission connection for offshore wind farms was still in progress, under the vigilant supervision of the New Jersey National Guard.
What’s Next For The Global Offshore Wind Industry
Despite the exit of Shell, EDF-RE has a solid case for maintaining its stance. Plans began to solidify back in 2022 for a cumulative total of 2.8 gigawatts of offshore wind from Atlantic Shores Projects I and II, situated off the coast of Atlantic City. In October, BOEM approved the commencement of construction, an event that Atlantic Shores celebrated with the backing of major environmental organizations in New Jersey.
On the other hand… if Trump succeeds in neglecting the country’s interest in establishing a completely new energy sector, offshore wind stakeholders are more than ready to pack their bags and relocate their business elsewhere.
In one recent development, bp and the Japanese firm JERA announced a new 50-50 offshore wind joint venture last December, targeting a total of 13 gigawatts under the name of JERA Nex bp.
“bp and JERA Co., Inc. have agreed to combine their offshore wind operations to form a new standalone, equally-owned joint venture that will become one of the largest global offshore wind developers, owners, and operators,” the two firms announced in a press release dated December 9, adding that “JERA Nex bp is expected to benefit from the existing relationships and partnerships that the two shareholders have worldwide, including across the supply chain.”
The partners have already committed to up to $5.8 billion in capital investment for offshore projects before the end of 2030. That’s an intriguing turn of events. As of last fall, bp announced that it was scaling back its renewable energy ventures, but the JERA partnership suggests that it’s exploring an alternative investment model.
Don’t hold your breath for JERA Nex bp to debut in the US. The company is targeting lucrative offshore wind markets in Australia as well as its combined home turf of Japan and the northwestern part of Europe.
To conclude on a positive note, one promising aspect of the US offshore wind sector could be Louisiana, where waters under state jurisdiction are set to host two wind farms, free from interference from the Trump administration — for the time being, that is.
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Image (cropped): The US offshore wind developer Atlantic Shores remains committed to advancing plans for two projects in federal waters off the coast of New Jersey, regardless of Trump (courtesy of Atlantic Shores).
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