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If you heard the sound of a Bronx cheer coming from New Jersey on January 30, that was the company Atlantic Shores blowing off the Trump administration’s wind work stoppage order. Atlantic Shores began life as a 50-50 joint venture between two of the largest global energy firms on the planet, and one of them intends to forge ahead with 2.8 gigawatts of offshore wind energy in New Jersey.
Offshore Wind Firm To Trump: You Can’t Wish Me Away
High profile foes of the President have folded like one house of cards after the other, and Atlantic Shores could eventually head in that direction. For now, though, only one partner in the 50-50 venture, Shell, has given up the ghost. Shell reportedly pulled the plug on January 30 and wrote off its $1 billion investment.
That leaves the other partner, EDF-RE Offshore Development, to hold the fort. EDF-RE comes under the umbrella of a diversified energy corporation with global reach, the French firm EDF.
With EDF in its pocket, Atlantic Shores may have the resources to wage a battle over the legal authority of Trump’s offshore wind shutdown, the result of an executive order impacting projects within federal lands and waters. The onshore wind industry can continue to avail itself of private property and public lands under non-federal jurisdiction, but the offshore industry is almost exclusively dependent on lease areas in federal waters.
“Atlantic Shores is committed to New Jersey and delivering the Garden State’s first offshore wind project,” Atlantic shores stated in a brief press release posted on its website on January 30, after news of the Shell pullout circulated.
“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 under existing leases and relevant permits,” they added.
Multiple news organizations also cited another version of the statement that includes an additional paragraph, indicating that Atlantic Shores is in it for the long haul:
“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.”
Another Never Give Up, Never Surrender Moment For The US Offshore Wind Industry
CleanTechnica has spilled plenty of ink on the ups and downs of the US offshore wind industry, and New Jersey is a case study of soldiering on through the downs. The state’s offshore industry was poised to lead the vanguard of offshore development during the Obama administration, only to be slow-walked to death under the leadership of then-Governor Chris Christie.
Somewhat ironically, after Christie left office the Trump administration paved the way for a fresh burst of activity under incoming Governor Phil Murphy. When President Joe Biden took office in 2021, he inherited a freshly streamlined offshore lease system under the wing of the Interior Department’s Bureau of Ocean Energy Management. The result was a torrent of new offshore leases issued during his tenure, including a new batch of projects for New Jersey and New York (see lots more offshore background here).
Atlantic Shores is not the only offshore wind investor to play the long game in the New York – New Jersey arena. Equinor, for example, has already closed on $3 billion in financing toward the construction of a sprawling, 73-acre wind turbine pre-assembly and staging site in Brooklyn, which is already well under way.
Equinor closed the financing round for the onshore facility even though it canceled plans for its Ocean I and II offshore wind farms, indicating that the company is still prepping for a rebirth of the US offshore industry after Trump leaves office at the crack of 2029.
Meanwhile, the fate of New Jersey’s planned Wind Port turbine hub in Paulsboro has been up in the air since last year, when the Danish firm Ørsted announced it was pulling out of two wind projects.
Nevertheless, New Jersey has continued to lay the groundwork for the next wind energy renaissance. The state has set a goal of 11 gigawatts by 2040, long after Trump exits the stage. As of last year, construction of the transmission connection for offshore wind farms was still under way, under the watchful eye of the New Jersey National Guard.
What’s Next For The Global Offshore Wind Industry
Despite the exit of Shell, EDF-RE has a good case to make for sticking to its guns. Plans began to gel back in 2022 for a combined total of 2.8 gigawatts of offshore wind from Atlantic Shores Projects I and II, located off the coast of Atlantic City. In October BOEM greenlighted the beginning of construction, an occasion that Atlantic Shores celebrated with the support of mainstream environmental organizations in New Jersey.
On the other hand…well, if Trump succeeds in abandoning the nation’s interest in developing an entirely new energy industry, offshore wind stakeholders are more than willing to pack their bags and take their business elsewhere.
In one recent development, bp and the Japanese firm JERA announced a new 50-50 offshore wind joint venture last December, aiming for a total of 13 gigawatts under the name of JERA Nex bp.
“bp and JERA Co., Inc. have agreed to combine their offshore wind businesses 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 funding for offshore projects before the end of 2030. That’s an interesting twist. As of last fall bp announced that it was dialing down its renewable energy ventures, but the JERA partnership indicates that it is testing an alternative investing model.
Don’t hold your breath for JERA Nex bp to make an appearance in the US. The company is aiming for rich offshore wind markets in Australia as well as its combined home turf of Japan and the northwestern part of Europe.
To end on a high note, one bright spot in the US offshore wind industry could be Louisiana, where waters under state jurisdiction are set to host two wind farms, free from interference by the Trump administration — for now, that is.
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Image (cropped): The US offshore wind developer Atlantic Shores is still determined to move forward with plans for two projects in federal waters off the coast of New Jersey, Trump or no Trump (courtesy of Atlantic Shores).
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