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NJ offshore wind leases dumped by Ørsted may be snapped up

By Jon Hurdle for NJ Spotlight

When Ørsted abandoned its plans for a massive wind farm off the Jersey Shore, it was a major blow to the Murphy administration and its promise of more renewable energy serving the state by 2040.

But the energy developer’s exit does not represent a total loss, as it readies to sell its ocean leases amid signs of strong demand from developers.

According to industry analysts and others, the offshore wind industry is poised to buy up the ocean leases that could generate enough power for some 1 million New Jersey homes,

One or more developer is now expected to acquire the leases that would have allowed Ørsted to create its Ocean Wind 1 and 2 projects about 15 miles off the coast of South Jersey in what would have been the state’s first commercial-scale offshore wind farms.

The Danish wind giant’s shocking withdrawal on Halloween last year was a major setback for the Murphy administration’s plan to install 11 gigawatts of carbon-emissions-free offshore wind power — enough to power more than 8 million homes — by 2040, prompting Gov. Phil Murphy to blast the decision as “outrageous.” It now seems unlikely that New Jersey will be able to meet that deadline given the long lead time and high cost of building wind farms.

But wind industry sources predict that new developers will soon offer to buy the leases, drawn by slowing inflation, lower expected interest rates, and more attractive terms for offshore wind power now offered by New Jersey regulators.

“The economics for offshore wind have been changing for the past year or so,” said Kris Ohleth, executive director of the Special Initiative on Offshore Wind, a consultant to the industry. “If there’s an opportunity out there, developers are going to have a keen interest in getting into the market.”

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New Jersey and Orsted offshore wind are officially kaput

By Bill Barlow, Press of Atlantic City

In two unanimous votes Wednesday, the New Jersey Board of Public Utilities vacated rulings related to Ocean Wind 1 and Ocean Wind 2, huge offshore wind power projects from Danish energy company Ørsted.

Board members vacated a 2019 decision approving Ocean Wind 1 to build close to 100 towering wind turbines off South Jersey beaches. That plan seemed likely to be the first large-scale offshore wind project to be completed in New Jersey, although local opposition continued to grow as the project moved through the state and federal permitting process.

Orsted settle claims with New Jersey for $125M over scrapped offshore projects (AP)
ORSTED pulls plug on its New Jersey offshore wind energy plans (EnviroPolitics)

The BPU vote also vacates approvals granted for rights-of-way for the proposed power lines to pass under Ocean City and across Upper Township to bring the power to the site of the former B.L England power plant, where it would have entered the power grid.

A state law, one which the primary sponsor described as being aimed at Ocean City, allowed the BPU to approve the right-of-way if local communities failed to do so. Several local officials at the city and county level called the move a blow to the principles of home rule.

In September of last year, a group of protesters blocked work at 35th Street exploring the route for the power lines to cross Ocean City. Eventually, six people were arrested after they refused to clear the way. Charges were later dropped.

Despite the decision to vacate, that state law remains in effect.

“The BPU still has the authority to grant new easements to a qualified wind energy company without consent by Ocean City or Cape May County,” Ocean City spokesman Doug Bergen said in an emailed response to a request for comment. “The city continues its legal action challenging the constitutionality of the statute that gives the BPU that power.”

Cape May County celebrated the decision.

“Today is a very important day in our ongoing opposition to these environmentally destructive offshore wind projects,” county Commissioner Director Len Desiderio said in a statement released after the vote. “The vacation of these orders by the BPU means that it will be much more difficult for Ørsted or any other big wind company to utilize these lease areas just a few miles off Cape May County beaches.”

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New Jersey and Orsted offshore wind are officially kaput Read More »

ORSTED pulls plug on its New Jersey offshore wind energy plans

New Jersey Gov. Phil Murphy said the company’s decision was “outrageous and calls into question the company’s credibility and competence.”

A completed monopile foundation at EEW AOS where the massive monopile foundations for the offshore wind turbines are manufactured in Paulsboro, Gloucester County. Jessica Griffin / Staff Photographer

By Frank Kummer and Amy S. Rosenberg, Philadelphia Inquirer, Oct. 31, 2023

Global offshore wind developer Orsted said Tuesday night that it is pulling out of both of its projects scheduled to be built off the coast of New Jersey, a move that enraged Gov. Phil Murphy and could be a big blow to the state’s renewable energy ambitions.

The Danish company made the announcement after a decision by its board of directors. Both the Ocean Wind 1 and 2 projects, which would have had the capacity to produce 2.2 gigawatts of renewable energy, will be scrapped.

“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,” said David Hardy, Group Executive Vice President and CEO Americas at Orsted. “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2.”

Orsted said Tuesday night that it is pulling out of both of its projects scheduled to be built off the coast of New Jersey, a move that enraged Gov. Phil Murphy

Hardy said the company was disappointed and thanked Murphy and other state leaders who tried to kick-start the industry in the state, hoping to make it a hub for offshore wind in the Northeast.

Orsted is, however, proceeding with other wind projects in the U.S. and internationally.

“Today’s decision by Orsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence,” Murphy said in a statement. “As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project.”

Murphy said his administration is looking “to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations.”

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Offshore wind opponents applaud Orsted’s delay announcement

Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)

By DONALD WITTKOWSKI and MADDY VITALE, Downbeach

Opponents of what would be New Jersey’s first offshore wind energy farm are celebrating the announcement that the project will be delayed until 2026, but vowed to keep up their fight until it fails altogether.

After suffering a series of legal and regulatory setbacks in the past year, the opponents are encouraged that they are finally gaining the upper hand in their efforts to block the Danish energy giant Orsted from building the wind farm 15 miles off the coast from Atlantic City to Stone Harbor.

“I think this is a sign that the tide is turning. While this is a positive step, this is not the time to pop the champagne corks,” said Bob Barr, a former Ocean City councilman who now serves on the Cape May County Board of Commissioners, the elected body overseeing county government.

Ocean City and Cape May County officials have been among the most outspoken critics of Orsted’s plan to build 98 towering wind turbines as part of the controversial Ocean Wind 1 project, which some opponents believe will cause irreparable harm to the shore’s economy and environment.

“It is a terrible project, the worst I’ve ever seen. This project has no redeeming qualities at all,” Barr said.

U.S. Rep. Jeff Van Drew, another high-profile opponent of the Ocean Wind 1 project, broadly criticized Orsted’s plans on several fronts.

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Danish energy firm Orsted delays New Jersey wind farm until 2026

By WAYNE PARRY, Associated Press

Ørsted, the global wind energy developer, says its first offshore wind farm in New Jersey will be delayed until 2026 due to supply chain issues, higher interest rates and a failure so far to garner enough tax credits from the federal government.

The Danish company revealed the delay during an earnings conference call Wednesday, during which it said it could be forced to write off about $2.3 billion on U.S. projects that are worth less than they had been.

It also said it had considered simply abandoning the Ocean Wind I project off the southern New Jersey coast.

But Ørsted still believes the wind farm, to be built in waters off Atlantic City and Ocean City, will be profitable in the long run.

“As it stands today, we believe the best direction is to continue to invest in these projects,” said David Hardy, an executive vice president and CEO of the company’s North American operations. “It still is the better choice than walking away today.”

The company did not say when in 2026 its Ocean Wind I project will be fully operational, and a spokesperson could not say Thursday what the new timetable is. Previously, Ørsted had said power would be flowing to customers sometime in 2025.

Ørsted has federal approval for the Ocean Wind I project, and has state approval for a second New Jersey project, Ocean Wind II.

However, during Wednesday’s call, the company said it is “reconfiguring” Ocean Wind II and its Skipjack Wind project off the coasts of Maryland and Delaware because they do not currently meet its projected financial standards. It did not give details of what that reconfiguration might entail.

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Danish energy firm Orsted delays New Jersey wind farm until 2026 Read More »

NJ Gov. signs bill giving wind power developer Orsted big tax break

By BRENDA FLANAGAN, SENIOR CORRESPONDENT, NJ Spotlight News

“This is a momentous day for the state because we are creating jobs for the future right now,” said Gov. Phil Murphy as he stood between massive steel supports and praised an agreement to boost financial support for a Paulsboro plant that builds monopiles for offshore wind turbines. The Paulsboro plant is scheduled to supply 98 of the gigantic 400-foot-long pylons for developer Ørsted’s first wind farm off the South Jersey coast. A new law Murphy signed Thursday guarantees that Ørsted will get federal tax credits and in return put up $200 million for South Jersey wind manufacturing facilities.

“They’re making this huge investment, and we’re doing it to capture manufacturing jobs which we would have lost to other states if this hadn’t been done,” said former Senate President Steve Sweeney. His think tank published a report, warning that fierce competition for wind industry business threatened to blow New Jersey away. Ørsted, which underwrites NJ Spotlight News, claimed rising costs threatened to cripple the project.

“The reality is, steel doubled in price, interest rates went up, so at the end of the day, we had to do something,” Sweeney said.

But if Ørsted gets federal tax credits, why not New Jersey’s other major offshore wind energy developer? Atlantic Shores said it wants the same deal that Ørsted got, stating, “We need an industry-wide solution, one that stabilizes all current projects, including Atlantic Shores Project 1.” That project sits right beside Ørsted’s two wind farm tracts. Murphy said, “We’re open-minded, absolutely open-minded. We want to make sure taxpayers get a good deal, jobs are created, that the corporates do what they say they’re going to do. Are we open-minded trying to figure out some common ground with the other offshore sequences? Absolutely.”

Republican responds to Murphy’s bailout of foreign wind company

There’s backlash as Republicans call this a bailout. And some coastal towns object, worried that wind farms will harm marine mammals and spoil their view. New Jersey’s Division of Rate Counsel is also concerned because Ørsted will be optioning tax credits that otherwise would have gone to ratepayers. But environmental advocates emphasized that offshore wind energy helps address the climate crisis.

Ørsted also just received final federal approval for the project with construction slated to begin this fall.

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NJ Gov. signs bill giving wind power developer Orsted big tax break Read More »

New law lets Orsted’s offshore wind energy project bypass New Jersey local government approval

By Wayne Perry, Associated Press

OCEAN CITY — New Jersey utility regulators used a controversial law Friday enabling them to bypass local authorities and grant approvals needed for an offshore wind project to proceed.

The state Board of Public Utilities granted Orsted, the Danish wind energy developer, approvals toward several easements and permits that authorities in Cape May County had refused to grant the company.

They used an amendment to New Jersey’s offshore wind law passed in 2021 and signed into law by Democratic Gov. Phil Murphy removing most local control over where offshore wind projects come ashore. The law enables an offshore wind developer to apply to the utilities board for an order superseding local control over such projects.

“I just want to assure the public that we don’t take these kinds of actions lightly,” said Joseph Fiordaliso, the board’s president. “There has to be a definite public need for the board to even consider this kind of action. This is something that the majority of us believe will benefit the citizens of New Jersey.”

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Proposed Ocean City transmission link to Orsted offshore wind farm is subject of March 7 online meeting

Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)

By MADDY VITALE Downbeach

The public will hear from Orsted and PSEG representatives in a live-streamed meeting at 7 p.m. Monday, March 7, when officials will explain the project and their intention to utilize an area of Ocean City for an underground transmission line.

Each of the 99 wind turbines proposed in the project, called Ocean Wind, are roughly 900 feet tall and would stretch down the coast from Atlantic City to Stone Harbor about 15 miles offshore, passing by Ocean City in the process.

The company filed a petition on Feb. 2 with the state Board of Public Utilities to utilize an area of Ocean City to install a transmission line.

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Cape May County and Ocean City officials told OCNJDaily.com on Feb. 3 that they are reviewing the petition.

The project is in the planning and permitting phase and is slated for completion by 2024.

On Monday, Cape May County Administrator Kevin Lare said, “The county will have representation on the hearing March 7.”

Lare noted that the county is “continuing internal, deliberative discussions among the Board of County Commissioners.”

Over the last couple of years since Orsted approached Ocean City about the transmission line, and hosted forums about the project in the resort, there have been opponents to the plan as well as proponents.

An audience listens to Orsted representatives during the last forum in Ocean City in November.

There have been concerns over what the project could mean for marine life, the fishing industry, and if there will be bird strikes due to the turbines. Additionally, there are concerns that the wind farms will negatively affect real estate values, seasonal rentals, the tourist industry, drive up taxes, and increase the region’s energy bills.

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Steel fabriator secures $70M contract to build turbine foundations for Ørsted offshore wind projects in NJ and Md

Typical types of wind turbine foundations

By LORRAINE MIRABELLA Baltimore Sun

A Caroline County steel fabricator will supply $70 million in wind turbine foundations for projects that offshore wind farm developer Ørsted plans to develop in the ocean off Maryland and New Jersey, state and company officials announced Thursday.

Ørsted’s agreement with Crystal Steel Fabricators in Federalsburg will establish the state’s first offshore wind steel fabrication center. The manufacturer plans to expand its workforce by a third, hiring 50 additional welders, fitters, machine operators, painters and truck drivers.

Workers will make steel components used to construct wind turbine foundations for all of Ørsted’s mid-Atlantic projects, which are designed to power at least 1.3 million homes with renewable energy.

Maryland Gov. Larry Hogan toured Crystal Steel’s plant Thursday, joining officials and workers of both companies for the announcement.

“Ørsted is a cutting-edge company that has made it their mission to create a world that runs on green energy, and they are progressing toward that goal by their continued investment here in Maryland,” said the Republican governor, calling the potential economic benefits “an absolute game-changer.”

“Offshore wind presents a once-in-a-generation opportunity for the state of Maryland to grow and diversify our economy and our energy portfolio,” Hogan said.

Crystal Steel said the manufacturer’s work, to start this month, will support a long-term supply chain for an expanding offshore wind industry.

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Steel fabriator secures $70M contract to build turbine foundations for Ørsted offshore wind projects in NJ and Md Read More »

Power lines from Orsted’s offshore wind turbines would run under popular New Jersey beaches, to two closed onshore power plants

This photo from Aug. 15, 2016, shows offshore wind turbines near Block Island, R.I. A large offshore wind energy project planned off the coast of New Jersey will connect onshore to two former power plants, and cables will run under two of the state’s most popular beaches. (Michael Dwyer, File/Associated Press)

By Wayne Parry, The Associated Press

A large offshore wind energy project planned off the coast of New Jersey will connect onshore to two former power plants, and cables will run under two of the state’s most popular beaches, officials said Tuesday.

At a virtual public hearing on the Ocean Wind project planned by Ørsted, the Danish wind energy developer, and PSEG, a New Jersey utility company, officials revealed that the project would connect to the electric grid at decommissioned power plants in Ocean and Cape May Counties.

The northern connection would be at the former Oyster Creek nuclear power plant in Lacey Township; the southern connection would be at the former B.L. England plant, a coal-fired facility in Upper Township.

Governor Phil Murphy’s administration has pushed for the B.L. England plant to be used for offshore wind since at least 2019. The New Jersey Board of Public Utilities had previously paved the way for Ørsted to use the Oyster Creek site that same year.

Area surrounding the former B. L. England nuclear poser plant

Cables running from the wind farm, to be located between 15 and 27 miles (24 to 43 kilometers) off the coast of Atlantic City, would come ashore at one of three potential locations in Ocean City: 5th Street, 13th Street or 35th Street. They would then run under the roadway along Roosevelt Boulevard out to Upper Township and the former power plant, which closed in 2019.

Cables also would need to cross Island Beach State Park in Ocean County, running under the dunes and beach and existing parking lots, out into Barnegat Bay, coming ashore either directly at the Oyster Creek site in the Forked River section of Lacey, or at either Bay Parkway or Lighthouse Drive in Waretown, also known as Ocean Township in Ocean County.

Area surrounding Exelon’s closed Oyster Creek Generating Station

Pilar Patterson, permit manager for Ørsted, said the onshore work in beach areas would be kept to a minimum during the summer.

She said the company had done visualization studies showing that it would be difficult for the average person to see the windmill turbines from the shoreline, noting that weather conditions, time of day and other factors all affect visibility.

Some Jersey Shore residents have already voiced opposition to the project, based on the possibility of seeing the turbines from the beach.

The project, designed to generate 1,100 megawatts of electricity, enough to power 500,000 homes, would include up to 98 turbines.

The turbines would be illuminated by two types of lighting: aviation lights atop the turbines, which would only activate when a plane is nearby, and navigation lights designed to make the structures visible to boats. The second category of lighting would not be visible from shore; they cannot be seen from farther than 5 nautical miles, Patterson said.

She said the turbines would be spaced far enough apart that recreational vessels and fishing boats can maneuver among them. Orsted and state and federal regulators said minimizing any impact on recreational and commercial fishing is a top priority in building the project.

Scot Mackey, of the Garden State Seafood Association, said the fishing community’s input was not incorporated into final plans for the project.

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New Jersey Gov. Phil Murphy said the company’s decision was “outrageous and calls into question the company’s credibility and competence.”

A completed monopile foundation at EEW AOS where the massive monopile foundations for the offshore wind turbines are manufactured in Paulsboro, Gloucester County. Jessica Griffin / Staff Photographer

Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)

Orsted proposes to build a wind farm 15 miles off the South Jersey coast. This photo shows the turbines for an Orsted project overseas. (Photo credit Orsted)

Area surrounding the former B. L. England nuclear poser plant

Area surrounding Exelon’s closed Oyster Creek Generating Station

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