New Jersey Cancels Fourth Offshore Wind Solicitation as Shell Exits Atlantic Shores Project

The New Jersey Board of Public Utilities (BPU) has canceled its fourth offshore wind solicitation amid significant market challenges and Shell’s withdrawal from the Atlantic Shores project.

The solicitation, which initially targeted between 1,200 MW and 4,000 MW of capacity, faced setbacks when two of three bidders withdrew, leaving Atlantic Shores as the sole remaining participant.

BPU President Christine Guhl-Sadovy cited Shell’s exit as an equity partner and uncertainty in federal actions and permitting as key factors in the decision. “The Board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time,” she stated.

BPU’s decision and Shell’s departure, which comes with a $996 million impairment, reflects broader challenges in the U.S. offshore wind sector.

The decision arrives as the offshore wind industry faces renewed political headwinds. A recent executive order from President Donald Trump have called for an immediate halt to offshore wind leasing on the U.S. Outer Continental Shelf and initiated a comprehensive review of existing projects.

Despite these challenges, Atlantic Shores maintains its commitment to New Jersey’s first offshore wind project. The venture recently received federal approval for two facilities capable of generating 2.8 GW of renewable energy, enough to power nearly one million homes.

The development represents a notable setback for New Jersey’s ambitious clean energy goals, which include generating 11 gigawatts of offshore wind electricity by 2040 – targeted to represent 30% of East Coast wind energy production.

“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence,” said Governor Phil Murphy.

“However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence. I support the BPU’s decision on the fourth offshore wind solicitation, and I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs,” Murphy added.

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