Biden officials OK giant Shell-backed offshore wind farm Trump vowed to stop 'on day one'

Atlantic Shores venture of Shell and EDF gets key go-ahead amid flurry of announcements by federal regulator BOEM in runup to November's election

Donald Trump took aim at offshore wind during a rally in New Jersey.
Donald Trump took aim at offshore wind during a rally in New Jersey.Photo: Getty/Getty Images

President Joe Biden’s administration issued its ninth record of decision (ROD) for a US offshore wind project with the greenlighting of Shell-EDF’s mammoth 3GW Atlantic Shores array facing New Jersey – a project rival Donald Trump has vowed to stop if he is elected.

Trump took aim at Atlantic Shores during a rally in the state in May, when he referenced the specific number of turbines planned for the project and said: “You won't have to worry about governor [Phil] Murphy's 157 windmills” before promising to end offshore wind “on day one” of a new term.

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.

The ROD 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.

The ROD concludes the environmental review by offshore energy regulator Bureau of Ocean Energy Management (BOEM) and its partner agencies and sets the project up for approval of its construction and operations plan (COP), which would then allow the developers to begin at-sea installation.

“The Biden-Harris administration is building momentum every day for our clean energy future, and today’s milestone is yet another step toward our ambitious goal of deploying 30GW of offshore energy by 2030,” said Interior Secretary Deb Haaland.

The news follows on the heels of BOEM’s COP approval Monday for Avangrid’s 2.6GW New England array currently bid into the tri-state procurement round of Connecticut, Massachusetts, and Rhode Island.

With today’s approval, BOEM under the Department of Interior (DoI) has approved more than 13GW of offshore wind capacity, enough to power nearly five million homes.

BOEM also announced final sales notice for offshore acreage in the Central Atlantic wind energy areas (WEAs) and plans on further rounds this year in the Gulf of Mexico, the Gulf of Maine, and Oregon.

“At BOEM, our dedication to engaging with Tribal Nations, states, other government agencies, industry, environmental organizations, and ocean users remains paramount, ensuring responsible energy development while addressing community concerns and safeguarding our marine ecosystems." said BOEM director Elizabeth Klein.

Atlantic Shores South’s combined COP includes up to 200 total wind turbines and possibly ten offshore substations with export cables making landfall in Atlantic City and coastal community of Sea Girt 70 miles north.

The notice of the final EIS will be published in the Federal Register, the nation's journal of record, “in the coming days”, BOEM said.

“This milestone brings us one step closer to delivering New Jersey's first offshore wind projects and for the state achieving its ambitious goal of 100% clean energy by 2035," said Joris Veldhoven, Atlantic Shores CEO.

Industry group American Clean Power Association's vice president of offshore wind Anne Reynolds said the ROD was “terrific news for New Jersey”.

“Offshore wind power will strengthen the grid and provide clean electricity to meet the growing energy demands of the Garden State,” she added.

“BOEM’s consistent efforts to move projects through the regulatory process are pushing the offshore wind industry forward,” said Sam Salustro, vice president of strategic communication at Oceantic Network.

Beyond its initial project, Atlantic Shores has submitted another COP to BOEM for a proposed 2.35GW Atlantic Shores North array in acreage held adjacent to its ongoing project.

It also owns another lease in the New York Bight holding around 1GW of capacity or more.

MidAtlantic demand

The MidAtlantic states have total demand of 28.5GW, led by New Jersey’s executive order for 11GW by 2040, followed by New York’s mandate for 9GW by 2035 and Maryland’s legal requirement of 8.5GW by 2031.

Despite rosy prospects, Atlantic Shores has faced significant headwinds since being awarded by New Jersey in 2021.

Its estimated levelised price of $58.8/MWh is among the lowest ever for a US project and news reports indicate will seek to renegotiate its offtake contract with regulator New Jersey Board of Public Utilities.

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Published 2 July 2024, 16:08Updated 3 July 2024, 09:56
AmericasUSAtlantic ShoresShellEDF