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3mo ago

Trump's Offshore Wind Order Leads to Major Setbacks in U.S. Clean Energy Efforts

Shell exits $1 billion New Jersey wind project as regulatory uncertainty and market challenges mount under new executive order.

A boat passes by July 2, 2024, off Sea Girt, N.J., where a power cable from the Atlantic Shores offshore wind farm project is projected to come ashore. Inset: President Donald Trump speaks in the James Brady Press Briefing Room at the White House, Thursday, Jan. 30, 2025, in Washington.
Offshore wind power US
Wind turbines are pictured in Tarifa, Spain on January 24, 2025.

Overview

  • President Donald Trump's executive order halting federal permits and leases for offshore wind projects has created significant challenges for the U.S. wind energy sector.
  • Shell announced its withdrawal from the Atlantic Shores wind project in New Jersey, citing regulatory uncertainty and market conditions, and wrote off a $996 million investment.
  • Danish wind developer Orsted, a major player in U.S. offshore wind, recently replaced its CEO after facing financial struggles, including an 80% drop in share prices since 2021.
  • The offshore wind industry is grappling with inflation, supply chain issues, and high costs, making investor confidence heavily reliant on strong policy support.
  • While some projects already under construction are expected to proceed, uncertainty surrounding planned developments raises concerns about the sector's future growth.