Co-Owner Shell Walks Away From East Coast Wind Project, Citing "Regulatory Uncertainty"
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On his first day in office, Trump signed an executive order singling out offshore wind for contempt with a temporary halt on all lease sales in federal waters and a pause on approvals, permits and loans. Perhaps most of interest to Shell, the order directs administration officials to review existing offshore wind energy leases and identify any legal reasons to terminate them.
Large offshore wind farms have been making electricity for three decades in Europe, and more recently in Asia. They are considered by experts to be an essential part of addressing climate change because they can take the place of fossil fuel plants, if paired with battery storage. New Jersey has set a goal of generating 100% of its energy from clean sources by 2035. The Biden administration approved plans to build the Atlantic Shores project in two phases in October, but construction has not begun. Oliver Metcalfe, head of wind research at BloombergNEF, said the partners are facing significant uncertainty about their lease, and other developers are watching what happens with Atlantic Shores closely. Were in uncertain territory here, he added.
Offshore wind foes, who are particularly vocal and well-organized in New Jersey, celebrated Shells withdrawal. Republican Rep. Jeff Van Drew, of New Jersey, helped the Trump team draft the executive order. He said Shells decision is a big win for New Jerseys coastline and economy but this fight is not over.
Robin Shaffer, president of Protect Our Coast NJ, said that without Shells financial backing, it appears the project is dead in the water. Shell is writing off a nearly $1 billion investment. It announced its decision on Thursday, as it reported a 16% decline in full-year earnings of $23.7 billion from $28.3 billion. Most of its business is oil and gas. Danish wind developer Orsted was close to beginning work on two offshore wind farms in New Jersey but scrapped the project in Oct. 2023 after deciding it would not be economical.
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https://apnews.com/article/wind-energy-offshore-turbines-trump-executive-order-new-jersey-121fe7a76529fcf9ce969868dda6283e