Orsted proposed builiding a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)
By NANETTE LoBIONDO GALLOWAY
Orsted, the Danish company considered a global leader in offshore wind energy, Tuesday evening abandoned its effort to develop the Ocean Wind 1 and 2 wind farm projects off the coast of New Jersey. According to a release posted on its website, the Orsted Board of Directors said it would “cease development” of the Ocean Wind projects but would finalize its investment in the Revolution Wind project, a joint project with Eversource, off the coast of New York and Connecticut. Detractors of the massive projects claimed a partial victory when they heard the news and vowed to continue fighting against other wind turbine projects.
“Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments,” Group Executive Vice-president and CEO of Americas at Orsted David Hardy said in the release. “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2. 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.”
Orsted said the company experienced significant impacts, including high inflation, rising interest rates and supply chain constraints, particularly a vessel delay on Ocean Wind 1 that considerably impacted project timing. The company intends to retain the seabed lease area and consider the best options as part of the ongoing portfolio review.
In a statement posted on X, Murphy said Orsted’s decision is “outrageous and calls into question the company’s credibility and competence.”
He directed the administration to review legal rights and remedies and take any necessary steps to ensure Orsted honors its obligations to the state.
“While today is a setback, the future of offshore wind in New Jersey remains strong,” he said, citing other bids for a third offshore wind solicitation.
“The Board of Public Utilities will shortly announce two additional solicitations related to our first-in-the-nation state agreement approach to build an offshore wind transmission infrastructure,” Murphy said. “I remain committed to ensuring that New Jersey becomes a global leader in offshore wind – which is critical to our economic, environmental and clean energy future.”
U.S. Congressman Jeff Van Drew who forwarded a campaign to stop the project, said “David defeated Goliath.”
“These Green New Deal style wind farms were bad for our economy, bad for our environment, and would have been an unmitigated disaster for South Jersey’s hard working middle class families, which is why we fought like hell over the last few years to make their defeat a reality,” he said in a statement.
He thanked local officials and anti-wind farm advocates for mounting a grassroots campaign against the projects.
“While we welcome the news that Orsted has abandoned Ocean Wind One & Two, we need to build on this momentum and see to it that the remaining projects proposed off our coast meet the same fate,” he said.
Brigantine Mayor Vince Sera concurred with Van Drew’s assessment, stating the projects would have “no positive impact on climate change or global warming.”
Keith Moore, director of Defend Brigantine Beach Government Affairs, said the organization had achieved its goal for Brigantine and Downbeach, thanking volunteers for preventing the damages offshore wind turbines would cause to the community.
He called Orsted pulling out “a first step,” and encouraged volunteers to continue supporting the effort against other offshore wind projects.
Cape May County Commission Director Leonard Desiderio called it a great day for the Atlantic Ocean and the marine life that thrives there.
“This is a great day for the whales and dolphins,” he said in a statement. “There were many who consistently told us that we were wasting our time, and that there was nothing we could do about the project being built. Well, I am happy that the County Board of Commissioners and so many in our business community and the grassroots groups that have been protesting did not listen to the naysayers.”
He said the county would “redouble our efforts to ensure that our horizon remains free of massive offshore industrialization.”
Ørsted said it would continue its effort to establish offshore wind in the U.S.
“We remain committed to the U.S. renewable energy market, building clean power that will create jobs across technologies and states from the Northeast to Texas,” Hardy said. “Offshore wind energy remains an integral solution to helping the U.S. meet its clean energy ambitions, including job creation, a domestic supply chain and a reinvigorated maritime industry.”
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