Atlantic Shores Offshore Wind says it remains committed to NJ, despite

Gas company Shell has announced taking a nearly $1 billion write down on its major New Jersey offshore project called Atlantic Shores Offshore Wind, but the offshore wind project leaders still plan to move forward.

Shell announced during its fourth quarter earnings call Thursday that it would take a $996 million write down on its investment into the Atlantic Shores Offshore Wind project, according to Politico’s E&E News website, which focuses on environmental and energy topics.

Shell was pausing its involvement in Atlantic Shores as a result, according to the website.

Atlantic Shores Offshore Wind is a 1.5-gigawatt power project partnership by Shell New Energies U.S. and EDF Renewables Inc. The project would be located about nine miles off the southern coast of New Jersey near Atlantic City and southern Long Beach Island once complete.

Wind turbines spin off the shores of Block Island, Rhode Island.

Two spokespeople for Atlantic Shores Offshore Wind said the company remains committed to the project will keep moving forward.

“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,” a company spokesperson said in an email.

“While we can’t comment on the views of shareholders,” the statement continued. “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 partners under existing leases and relevant permit.”

It was not immediately clear how Atlantic Shores’ leadership plans to move forward without Shell’s support. When asked if Atlantic Shores would seek a new company to partner with EDF Renewables and replace Shell, a spokesperson declined to respond.

New Jersey Gov. Phil Murphy has sought to prioritize approvals for offshore wind energy in New Jersey as part of his mission to lower greenhouse gas emissions across the state and generate new, high-paying jobs. Atlantic Shores is one of three offshore wind projects approved along the coast that would provide power to New Jersey residents.

A fourth, earlier project by Denmark-based Ørsted was canceled in October, 2023, due to high interest rates, supply chain disruptions and other financial challenges facing the industry.

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Murphy said Thursday that he would continue to advance “environmental and clean energy priorities.”

“New Jersey will explore all available options to protect the health of our environment and residents while bolstering energy independence, creating good-paying American jobs, lowering energy bills, and growing New Jersey’s innovation economy,” he said through a spokesperson.

In contrast, President Donald Trump has vowed to stop new wind power projects across the country. On Jan. 20, he issued an executive order that froze the issuance of new offshore wind lease areas and paused permitting for wind projects.

Amanda Oglesby is an Ocean County native who covers education and the environment. She has worked for the Press for more than 17 years. Reach her at @OglesbyAPP, aoglesby@gannettnj.com or 732-557-5701.

This article originally appeared on Asbury Park Press: NJ offshore wind’s future in doubt after Shell announcement

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