Report on the Cancellation of the Atlantic Shores Offshore Wind Project in New Jersey

Introduction

Atlantic Shores Offshore Wind, a joint venture between Shell and EDF Renewables North America, has petitioned the New Jersey Board of Public Utilities to terminate its Offshore Renewable Energy Certificates (ORECs) order. This termination effectively cancels the planned 1.5-gigawatt offshore wind power project east of Atlantic City. The decision reflects significant economic and political challenges affecting the project’s viability.

Background and Project Overview

1. Project Award and Commitments
   • In 2021, Atlantic Shores was awarded ORECs by the New Jersey Board of Public Utilities, incentivizing offshore wind energy production in the state.
   • The project included a 30% federal investment tax credit.
   • Commitments included a $35.6 million investment in manufacturing and leasing at New Jersey’s Wind Port over two years, development of an operations facility in Atlantic City employing approximately 88 people, a $16 million pilot hydrogen power plant project, and $4 million for workforce development programs.
2. Political and Regulatory Challenges
   • Following President Trump’s executive order on wind energy, the U.S. Environmental Protection Agency’s Environmental Appeal Board revoked a critical air permit in March 2025, halting construction progress.
   • Shell withdrew from the project in January 2025, incurring a $996 million loss, followed by EDF’s $980 million impairment charge in February 2025.
3. Project Scope and Lease Areas
   • The project planned a 2,800-megawatt array of 197 turbines off Long Beach Island and Brigantine.
   • Atlantic Shores holds three lease areas off the New Jersey coast, covering over 1,036 square kilometers, including locations near Atlantic City and within the New York Bight.

Impact on Sustainable Development Goals (SDGs)

The cancellation of the Atlantic Shores Offshore Wind project has significant implications for several United Nations Sustainable Development Goals:

• SDG 7 – Affordable and Clean Energy: The project aimed to increase clean energy capacity in New Jersey, contributing to reliable and sustainable energy access. Its cancellation delays progress toward these targets.
• SDG 8 – Decent Work and Economic Growth: The project promised job creation through manufacturing and operations facilities, as well as workforce development investments. Termination impacts local employment opportunities and economic growth.
• SDG 9 – Industry, Innovation, and Infrastructure: Investments in the Wind Port and hydrogen pilot projects were aligned with fostering innovation and resilient infrastructure in renewable energy sectors.
• SDG 13 – Climate Action: Offshore wind projects contribute to reducing greenhouse gas emissions. The cancellation represents a setback in New Jersey’s climate action plans.

Challenges Faced

• Economic pressures including inflation driven by COVID-19 lockdowns and geopolitical tensions such as the Russian invasion of Ukraine.
• Regulatory and permitting obstacles, including the withdrawal of essential environmental permits.
• Political uncertainty and executive actions impacting offshore wind leasing and development.
• Cost increases and delays leading other major developers, such as Ørsted, to abandon similar projects in New Jersey.

New Jersey’s Offshore Wind Goals and Risks

1. Governor Phil Murphy’s executive orders set ambitious offshore wind targets:
   • 3.5 gigawatts by 2030 (2018)
   • 7.5 gigawatts by 2035 (2019)
2. No offshore wind projects have commenced construction, putting these goals at risk.
3. Electricity providers are mandated to purchase offshore wind power under the 2010 Offshore Wind Development Act.
4. Atlantic Shores’ request for a price increase due to inflation was denied after the Board of Public Utilities canceled a bid for proposals.

Conclusion

The formal request by Atlantic Shores to cancel key regulatory agreements marks a significant setback for New Jersey’s offshore wind ambitions and the broader U.S. offshore wind industry. The project’s termination highlights the challenges of developing costly, intermittent renewable energy technologies under current economic and political conditions. While the cancellation may reduce financial burdens on American households, it delays progress toward multiple Sustainable Development Goals, particularly those related to clean energy, economic growth, and climate action. The company maintains that the project remains in a holding pattern pending a more favorable political environment.

1. Sustainable Development Goals (SDGs) Addressed or Connected to the Issues Highlighted in the Article

1. SDG 7: Affordable and Clean Energy
   • The article discusses the development and cancellation of an offshore wind power project aimed at increasing renewable energy production in New Jersey.
2. SDG 8: Decent Work and Economic Growth
   • The project included plans for job creation (approximately 88 jobs) and workforce development programs.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Investment in manufacturing facilities at the state’s Wind Port and operations facilities are relevant to infrastructure and industrial innovation.
4. SDG 13: Climate Action
   • The offshore wind project was part of efforts to reduce reliance on fossil fuels and promote clean energy to mitigate climate change.
5. SDG 17: Partnerships for the Goals
   • The project was a partnership between multinational companies Shell and EDF Renewables, highlighting international cooperation.

2. Specific Targets Under Those SDGs Identified Based on the Article’s Content

1. SDG 7: Affordable and Clean Energy
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology.
2. SDG 8: Decent Work and Economic Growth
   • Target 8.5: Achieve full and productive employment and decent work for all women and men.
   • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
3. SDG 9: Industry, Innovation, and Infrastructure
   • Target 9.1: Develop quality, reliable, sustainable, and resilient infrastructure.
   • Target 9.5: Enhance scientific research and upgrade the technological capabilities of industrial sectors.
4. SDG 13: Climate Action
   • Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
5. SDG 17: Partnerships for the Goals
   • Target 17.6: Enhance North-South, South-South and triangular regional and international cooperation on and access to science, technology and innovation.

3. Indicators Mentioned or Implied in the Article to Measure Progress Towards the Identified Targets

1. SDG 7 Indicators
   • Proportion of energy from renewable sources (implied by the planned 1.5-gigawatt offshore wind project and state goals of 3.5 GW by 2030 and 7.5 GW by 2035).
   • Investment in renewable energy infrastructure (e.g., $35.6 million lease at Wind Port, $16 million hydrogen pilot project).
2. SDG 8 Indicators
   • Number of jobs created (approximately 88 jobs planned in Atlantic City operations facility).
   • Investment in workforce development programs ($4 million planned).
3. SDG 9 Indicators
   • Investment in manufacturing and operations infrastructure (lease and facility investments).
   • Number of operational offshore wind turbines planned (197 turbines for 2,800 MW array).
4. SDG 13 Indicators
   • Installed capacity of renewable energy contributing to emission reductions (planned gigawatt capacity of offshore wind).
5. SDG 17 Indicators
   • Number and scale of international partnerships (Shell and EDF joint project).

4. Table: SDGs, Targets and Indicators

Source: instituteforenergyresearch.org