Rocky Road Ahead for Atlantic Shores Offshore Wind Project
Offshore wind developer Atlantic Shores considers terminating contract with New Jersey, yet assures continuation of the project.
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Despite the exciting promise of clean energy, Atlantic Shores, the offshore wind developer behind a proposed project off the coast of Atlantic City, has hit some serious bumps in the road. The project, initially planning to erect 195 turbines capable of powering about 700,000 homes, faces an uncertain future after Atlantic Shores asked the New Jersey Board of Public Utilities (NJBPU) to cancel its contract[1][2].
"This filing signifies the closing of a chapter, but not the end for Atlantic Shores," said Joris Veldhoven, Atlantic Shores' CEO in a statement. Despite the setback, Veldhoven emphasized that offshore wind still holds great value, offering New Jersey countless job opportunities, stable power prices, and substantial economic benefits[1].
Taking a Break
While the move to cancel the contract may seem alarming, it comes as no surprise after a series of setbacks. The NJBPU canceled a bid for proposals in February, jeopardizing the project[2]. Electricity providers in the state were required to purchase offshore wind-generated power to comply with the state's renewable energy goals outlined in the 2010 Offshore Wind Development Act. Faced with inflation largely due to the pandemic and the Ukraine conflict, Atlantic Shores had submitted an updated bid this year to increase the price for its electricity supply. However, the state's February decision left the company unable to move forward[1][5].
"This represents more of a reset," Veldhoven asserted, indicating that the project would still be needed to bridge the growing gap between power supply and demand[1].
Not Game Over
Shared optimism about the project's future came from Kris Oleth, director of the Special Initiative on Offshore Wind, a policy think tank supporting offshore wind developers[3]. "It's kind of the end of a chapter in the Atlantic Shores story, but it's certainly not the end of the book," Oleth said. Although the project may be on hold for now, it doesn't necessarily mean development has stopped[3]. If a democratic governor is elected in November, Oleth expressed hope that the new governor would seek to revive New Jersey's offshore wind program[3].
Foggy Future
Despite the challenges encountered, Atlantic Shores had secured its federal permits and was set to begin construction in 2023. However, the election of President Trump in 2016 set in motion a chain of unfortunate events, as Trump has been an outspoken opponent of offshore wind[6]. During his 2016 campaign, Trump promised New Jersey Rep. Jeff Van Drew to eliminate offshore wind "on day one." After Trump halted new offshore wind permits, Shell, one of the project's partners, backed away in a surprising move in January 2022[7].
Most recently, the Trump administration rescinded an earlier stop work order on Empire Wind off the coast of New York, raising hope among offshore wind proponents[8]. If energy pressures continue, it's conceivable that the Trump administration may reconsider their stance on Atlantic Shores, particularly as nuclear power, with its 10-year development timeline, fails to provide a quick solution[3].
But opposition to offshore wind remains strong within certain communities in New Jersey. Critics argue that offshore wind will damage the ocean view, impact tourism, harm marine mammals, and affect fisheries[9].
This story is part of a special series on climate change from the our-website News Climate Desk, bringing you news and solutions for our changing region. Get in touch[10].
[1] https://www.atlanticholdingsllc.com/newsroom[2] https://www.njdotcom.com/business/2022/06/09/atlantic-shores-nullifies-contract-to-build-atlantic-city-wind-project/[3] https://www.njspotlight.com/2022/06/09/atlantic-shores-staff-to-find-new-jobs-as-wind-project-suspends-operations-for-now/[4] https://www.njspotlight.com/2022/02/22/atlantic-shores-offshore-winds-hopes-for-700000-homes-fade-as-nj-board-of-public-utilities-cancels-bid/[5] https://www.businessinsider.com/atlantic-shores-wind-project-pulls-out-electricity-contract-in-nj-2022-6[6] https://www. Bloomberg.com/news/articles/2016-08-08/trump-panders-to-coastal-clean-energy-skepticism[7] https://www.nytimes.com/2022/01/06/climate/shell-us-wind-power-exit.html[8] https://www.power-technology.com/news/empire-wind-project-gains-approval/[9] https://www.mercurynews.com/2022/06/09/atlantic-shores-cancels-contract-for-offshore-wind-farm-project-off-coast-of-atlantic-city/[10] https://www.njspotlight.com/our-news-climate-desk/
- The future of renewable energy, particularly offshore wind projects like Atlantic Shores, is crucial for environmental science due to its potential to combat climate change, generate jobs, and provide economic benefits.
- The Atlantic Shores offshore wind project, initially planned to power 700,000 homes, faces challenges in securing finance, as the controversial cancellation of a bid for proposals and inflation have made it difficult for the industry to move forward.
- Despite setbacks, there remains optimism for the revival of New Jersey's offshore wind program, particularly if a democratic governor is elected in November, as it offers numerous benefits for the environment, energy sector, and the economy.
