New Jersey Gov. Phil Murphy said the company’s decision was “outrageous and calls into question the company’s credibility and competence.”
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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.
Related offshore wind energy news:
Orsted scraps 2 offshore wind power projects in New Jersey, citing supply chain issues
Ørsted gives up on New Jersey wind projects
Murphy, Democrats invested huge political capital in supporting project
GOP State Senator Testa’s statement on Orsted’s withdrawal
“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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