By Stephen Appezzato
Ørsted has ceased development of Ocean Wind 1 and Ocean Wind 2, two proposed wind farms off the Jersey Shore.
According to the Danish energy company, dramatic changes in macroeconomic factors, high inflation, rising interest rates and supply chain bottlenecks were the reason for the pull-out.
“We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a U.S. and global hub for offshore wind energy,” said David Hardy, Ørsted CEO of the Americas.
Ocean Wind 1 and Ocean Wind 2 were to produce 1,100 megawatts and 1,148 megawatts of wind energy, respectively, once completed and were a cornerstone of Gov. Phil Murphy’s commitment to green energy.
The announcement comes as a shock to many. In July, Murphy reaffirmed support for the projects, granting approximately $1 billion in federal tax relief to the company to ameliorate cost concerns.
Late Oct. 31, Murphy slammed Ørsted for abandoning the projects, calling the move “outrageous.”
The decision “calls into question the company’s credibility and competence,” he said.
State representatives voiced similar outrage against Ørsted.
Sen. Vin Gopal (D-11) called on the Attorney General to sue Ørsted “for fraud and negligence.”
Gopal criticized state democrats for ushering in July’s $1 billion federal tax credit subsidy bill, urging the Attorney General to “get back ever y dollar given to them (Ørsted).”
“It is up to the Attorney General to recover every single tax dollar wasted,” he said.
Republicans from Legislative District 13, Sen. Declan O’Scanlon and Assembly members Vicky Flynn and Gerry Scharfenberger, said the news was not a surprise to those who have questioned Murphy’s “overzealous ‘green’ energy mandates,” calling it an “I told you so” moment.
In a release, the slate said the proposed wind projects “never seemed to add up – financially or environmentally.”
“It was quite obvious in June that these projects were unsustainable without substantial financial backing by taxpayer dollars,” they said.
Ørsted’s exodus has put concerns over offshore wind in New Jersey to rest – for now.
Some citizens and environmental groups believe activity related to the projects was the cause of whale and other sea mammal deaths, calling for an offshore wind moratorium since carcasses began washing up on local beaches. That theory has not been proven.
But despite the news, Murphy said he remains “committed to ensuring that New Jersey becomes a global leader in offshore wind – which is critical to our economic, environmental, and clean energy future.” Murphy mentioned the state has received numerous bids to produce the state’s “ongoing third offshore wind solicitation,” and the Board of Public Utilities will soon announce two developments in the push to bring offshore wind to the Garden State.
Ørsted’s decision was a hit to green energy advocates and those who believed in Murphy’s vision to facilitate offshore wind production.
The article originally appeared in the November 2 – November 8, 2023 print edition of The Two River Times.
