French energy giant EDF announced it has written down $940 million in the value of its stake in the Atlantic Shores wind energy project off New Jersey, after its erstwhile partner Shell pulled out of its $1 billion investment in January.
With the new Trump administration’s hostility to offshore wind projects, Shell’s continuing pivot away from renewable projects to its legacy oil business, was a major blow to the planned 1,510-megawatt turbine array off Long Beach Island and Brigantine, N.J.
Soon after Shell’s decision, the New Jersey state Board of Public Utilities decided not to proceed with a new wind power solicitation that would have allowed Atlantic Shores to submit an updated bid.
“There have been significant evolutions in US offshore policy and that led us to reexamine our activities... and take a position that preserves the company and its future development,” EDF chief executive Luc Remont said in a Friday conference call with journalists, Agence France-Presse reported.
“In order to take into account the new American orientation... the board decided, at this stage, to write down the offshore activities in Atlantic Shores.”
In a later statement EDF left open future possibilites for the Atlantic Shores lease areas.
"EDF Renewables believes Atlantic Shores’ projects can contribute to an ‘all-of-the-above’ American energy dominance strategy. The projects are poised to provide urgently needed energy and jobs to the New Jersey economy and beyond within the American offshore energy industry."
“We maintain the belief that the Atlantic Shores’ projects will be important contributors to New Jersey coastal economy, and the broader US offshore supply chain, while also supplying essential power necessary for New Jersey’s growth.”
EDF’s pullback marks a second defeat for New Jersey Gov. Phil Murphy’s administration policy of developing offshore wind as a major contributor to the state’s energy future. Atlantic Shores was the second big nearshore project envisioned for New Jersey, along with Ørsted’s planned 1,100 MW Ocean Wind turbine array. Ørsted abruptly cancelled that plan in fall 2023 citing escalating costs.
The companies had obtained extensive wind energy leases from the federal Bureau of Ocean Energy Management. Opponents of the projects – including Jersey Shore community activists, local governments and commercial fishermen – say they will continue pushing to ensure the leases are not used to revive future wind energy plans.
