Atlantic Shores Presses On After Shell’s $1 Billion Offshore Wind Exit

The developer behind New Jersey’s first offshore wind farm plans to continue the project despite Shell’s withdrawal from the project.

Shell on Thursday announced its exit from the Atlantic Shores offshore wind project, taking a $996 million impairment as the U.S. offshore wind sector faces renewed political challenges.

Atlantic Shores Offshore Wind, a 50:50 joint venture between Shell New Energies US LLC and EDF-RE Offshore Development, LLC, had been positioned as one of the largest offshore wind development companies on the U.S. East Coast with approximately five gigawatts of capacity under development.

The joint venture recently received final federal approval from the Bureau of Ocean Energy Management for two wind energy facilities: Atlantic Shores South Offshore Wind Projects 1 and 2. Together, these facilities can generate up to 2.8 GW of clean, renewable energy—enough to power nearly one million homes.

However, Shell’s Chief Financial Officer Sinead Gorman stated that the project no longer aligned with the company’s capabilities or desired returns.

The announcement comes as President Donald Trump has targeted the offshore wind industry through executive orders that called for an immediate halt to all offshore wind development on the U.S. Outer Continental Shelf and launched a comprehensive review of existing wind energy projects.

Trump recently expressed hope that the wind farm off southern New Jersey would be “dead and gone” in a post on Truth Social, working with New Jersey Congressman Jeff Van Drew to draft industry-targeting executive orders.

Despite Shell’s exit, Atlantic Shores maintains its commitment to delivering New Jersey’s first offshore wind project. “While we can’t comment on the views of shareholders, 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 permits,” the company stated.

The project’s original plans included providing 1.5 GW of offshore wind energy to New Jersey, enough to power over 700,000 homes, with an expected start-up in 2027. The development also includes New York Bight acreage awarded in February 2022, capable of supporting an additional 1.5 GW of wind generation.

The development represents a significant setback for the American offshore wind sector, which flourished under the Biden administration but has recently faced challenges from rising costs and renewed political opposition under the Trump administration.

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