It’s not been a good week for New Jersey Gov. Phil Murphy. First, the Democrat made headlines for boasting about harboring an illegal immigrant in his home, taunting the feds to try to come after the person—a claim his team tried to walk back. Then, he announced that his administration was giving up on a key part of his environmental agenda.
In a statement on Monday, Murphy announced his administration would not provide financial support to new wind energy projects.
“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence,” he said. “This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy solutions.
“However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence,” he continued. “I support the BPU’s [New Jersey Board of Public Utilities] decision on the fourth offshore wind solicitation, and I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”
Murphy was referring to NJBPU president Christine Guhl-Sadovy's statement that the board would "not proceed with an award in New Jersey's fourth offshore wind solicitation."
"There were three initial bidders in the fourth solicitation. However, two bidders withdrew and only Atlantic Shores submitted a best and final offer," Guhl-Sadovy added, pointing to a number of factors led to the decision, including Shell backing out and "uncertainty driven by federal actions and permitting."
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Dead and gone! NJBPU sinks final nail in Atlantic Shores Offshore Wind coffin. Good riddance! https://t.co/DKzEcRVNQf
— Mike Dean (@mikerdean22) February 3, 2025
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 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. (Politico)
Last month, Ørsted took a $1.7B write down on its offshore wind business. Last month, @Shell took a $1B writedown and said it was quitting the Atlantic Shores project and on Monday, the state of New Jersey cancelled bids for an offshore wind solicitation. All of this is great… pic.twitter.com/LuCx4HN2IF
— Robert Bryce (@pwrhungry) February 5, 2025
New Jersey Rep. Chris Smith celebrated the "good news," which comes after Shell Energy's recent announcement that the company is pulling out of the Atlantic Shores wind project off the Garden State's coast.
“The BPU’s cancellation is a sign that they have finally understood the undeniable facts. Industrializing our oceans is completely untenable, widely rejected by the public, and will come at an unimaginable cost to New Jersey’s tax and rate payers,” Smith said.
“Without Shell, even the Murphy Administration, which has been shoveling taxpayer money into these projects at breakneck speeds to give them a pulse, admits these projects are not economically viable. This is truly astounding, given Atlantic Shores was allowed to rebid in the fourth solicitation to give them an even more favorable deal so the project could be completed despite skyrocketing costs,” the Republican continued.
As Smith noted, the cancellation comes after President Trump signed an executive order on his first day in office suspending new federal offshore wind energy leases.
