Biden greenlights massive Shell-backed offshore wind array targeted by Trump
Federal approval allows 3GW Atlantic Shores project to head into construction, but questions remain over its low offtake price and the upcoming presidential election
US President Joe Biden’s administration approved the construction and operations plan (COP) for Shell-EDF’s mammoth 3GW Atlantic Shores offshore wind array to New Jersey – a project rival Donald Trump has vowed to stop if he is elected.
This final approval by federal regulator Bureau of Ocean Energy Management (BOEM) allows the project to head into construction.
“The Biden-Harris administration is dedicated to advancing responsible offshore wind energy projects like Atlantic Shores South Wind, which will create good-paying jobs and drive economic growth, while combatting the climate crisis and making our communities more resilient,” said BOEM director Elizabeth Klein.
The COP approval covers two projects in the same lease 8.7 miles (14 km) off New Jersey collectively referred to as the Atlantic Shores South, but only the 1.5GW Atlantic Shores 1 project has an offtake contract with the state.
“Securing these critical approvals enables New Jersey’s first offshore wind project to start construction next year and represents meaningful progress in New Jersey achieving 100% clean energy by 2035,” said Joris Veldhoven, Atlantic Shores CEO.
New Jersey governor Phil Murphy is an ardent offshore wind supporter and has set one of the nation’s most ambitious targets of 11GW by 2040.
The state has 5.2GW under contract but has struggled to maintain momentum amid inflationary and financing cost headwinds that derailed Orsted's 2.25GW Ocean Wind arrays last year.
“Atlantic Shores South is expected to support tens of thousands of jobs in construction and maritime trades and inject more than $1.9bn into the Garden State economy,” said Anne Reynolds, vice president for offshore wind at industry group American Clean Power Association.
Sector momentum
This is the tenth COP greenlight issued by the administration, bringing the total of fully approved US offshore wind capacity to 15GW for the ramping sector.
One commercial scale project, Orsted-GIP’s 132MW South Fork array to New York, is already constructed and feeding power to the grid.
Orsted’s 704MW Revolution split between Connecticut and Rhode Island is in offshore construction, while its 920MW Sunrise to New York has initiated onshore works.
Construction of Dominion Energy’s mammoth 2.6GW Coastal Virginia Offshore Wind array is likewise well underway, and the developer recently announced installation of its fiftieth monopile.
Despite this momentum, the possible election of former Republican president Donald Trump could be a setback for the sector generally and for Atlantic Shores in particular.
Trump crosshairs
The former and would-be future president has been openly hostile to wind power during his latest campaign, issuing a series of threats to the sector in public and private.
Biden’s vice president and Democratic candidate Kamala Harris is neck-and-neck with Trump in recent polls.
If elected, Harris is expected to maintain Biden’s support for renewables.
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