Rising Costs and Opposition Stall Offshore Wind Projects, Threatening Biden's Climate Goals

Major wind power company Orsted cancels two large offshore projects in New Jersey, citing economic difficulties, as industry faces increasing costs and fierce political and local opposition.

Orsted, a Danish global offshore wind developer, abruptly cancelled two major wind power projects in New Jersey, causing complications for the Biden administration's goal of implementing 30 gigawatts of offshore wind power by 2030.
The numerous obstacles faced by the offshore wind industry this year, including cancellations of contracts and projects in Massachusetts and Connecticut, place more than half of the offshore power currently under development at risk. This significantly impacts the feasibility of Biden administration's renewable energy goals.
Orsted cited economic factors such as rising interest rates and supply chain disruptions as the primary reasons for the cancellation of its two Ocean Wind projects in New Jersey. The projects were in direct alignment with the ambitious renewable energy objectives of New Jersey Governor Phil Murphy.
Despite Orsted’s withdrawal, Atlantic Shores Offshore Wind, a partnership between Shell New Energies and EDF Renewables North America, remains committed to their offshore wind project, which was approved by the New Jersey Board of Public Utilities and is expected to generate more than 1,510 megawatts of energy.
New Jersey, New York’s Democratic governor, remains hopeful about fulfilling her ambitious plan for shifting power generation from fossil fuels to renewable sources. This plan plays a central role in generating 70% of New York’s electricity from renewable resources by 2030.