Oil and Gas giant pulls out of N.J. wind power project
Consider it a bombardment of heavy shelling off the United States eastern seaboard.
Shell has recently paused its involvement in the Atlantic Shores Offshore Wind project in New Jersey. This decision comes after a nearly $1 billion write-off due to financial concerns and growing economic and political headwinds. The project, a 2,800-megawatt wind farm consisting of 197 turbines, was planned off Long Beach Island and Brigantine.
Governor Phil Murphy's offshore wind ambitions have taken a hit with this development, especially following President Trump's executive order pausing offshore wind permitting in New Jersey for six months.
Despite Shell's stated withdrawal, the project website seemingly vowed to move forward with its plans, posting this short statement Thursday:
"Atlantic Shores is committed to New Jersey and delivering the Garden State’s first offshore wind project. Business plans, projects, portfolio projections and scopes evolve over time – and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential. While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits."
It's definitely a significant development in the renewable energy sector, and one that may be shadowed by similar moves in the wind, solar, and battery storage realms in the future. There are countless major investments to large-scale projects like this on the line, and the new administration has brought added pressure to large Oil and Gas companies' approach to handling such projects.