New Jersey Gov. Phil Murphy’s administration gives up on new offshore wind

https://www.politico.com/news/2025/02/03/murphy-new-jersey-ends-offshore-wind-00202077

New Jersey will not provide financial backing to new offshore wind projects, Gov. Phil Murphy’s administration announced Monday. The decision blows a hole in his environmental agenda and legacy and effectively dooms Atlantic Shores, a project off the coast of Atlantic City that has been the focus of opposition from President Donald Trump and Rep. Jeff Van Drew (R-N.J.).

Murphy, a term-limited Democrat, took office in 2018 hoping offshore wind projects would be a perfect issue to unite a liberal coalition and ensure his legacy by providing clean energy to fight climate change and mega projects to employ union workers.

Instead, the industry is in tatters and Murphy will leave office without a single wind turbine in the water.

In a statement, the governor called the industry a “once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence,” but he acknowledged the realities facing it. He said the “offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence.”

The challenges include economic conditions beyond Murphy’s control and Trump, who has long railed against wind energy and ordered a halt to federal approval of offshore wind projects on his first day in office last month.

In New Jersey, state utility regulators approve new projects by agreeing to put ratepayers on the hook for the power from wind farms. The state has already approved five projects. Two were canceled in 2023 by Danish energy giant Ørsted, largely because of inflation and supply chain issues. Three others were plodding along — until Trump took office.

The biggest blow is Atlantic Shores, which was on track to be the state’s first offshore wind project after Ørsted’s exit. The project, a 50-50 partnership of European energy giants Shell and EDF, even received all its federal permits in the final weeks of the Biden administration. But it has long needed more money from the state and was vying, along with other projects, for that money.

Murphy’s Monday announcement canceled that bidding process, stranding Atlantic Shores, which also last week lost support from Shell. Bids were submitted last year to the Board of Public Utilities, which was supposed to award backing to projects in December but that was delayed and is now waylaid.

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