Shell-EDF's Atlantic Shores offshore wind to New Jersey on track with transmission contract and hearing

Project continues on its road to delivering 1.5GW of clean energy with substation work by Riggs Distler and Atlantic City hearing

Atlantic Shores chief development officer Jennifer Daniels
Atlantic Shores chief development officer Jennifer DanielsPhoto: Atlantic Shores

Shell-EDF joint venture (JV) Atlantic Shores marked further milestones on its road to delivering 1.5GW of offshore wind power to New Jersey on Tuesday (25 June) with a public hearing regarding onshore transmission through Atlantic City as well as the signing of a substation expansion contract.

Atlantic Shores is hoping to acquire permanent subsurface easement for 1.8 acres (0.7 ha) of Atlantic City-owned parkland as well as 1.99 acres of temporary workspace for the installation of onshore underground interconnection cables.

The parklands are protected by New Jersey Green Acres regulations and use by the developer will require state Department of Environmental Protection approval.

This “hearing is an important aspect of our process, and Atlantic Shores is proud to deliver projects that will improve regional air quality and reduce carbon emissions,” said Jennifer Daniels, chief development officer for Atlantic Shores.

“After extensive planning in coordination with our municipal partner, the City of Atlantic City, the proposed onshore route avoids, minimises, and mitigates effects to the environment and host communities.”

Public opposition

This hearing was virtual, unlike a previous hearing last year for the same issue that saw over 100 rowdy offshore wind opponents pack a meeting room in the Atlantic City town hall that required multiple city police officers and private security agents to be on hand to keep peace.

Despite governor Phil Murphy’s staunch support and 11GW goal, public opposition in the southern coastal counties of New Jersey, particularly Ocean and Cape May, has grown and was pivotal in driving Orsted from the state last year.

Amid surging inflation and chronic litigation, the Danish developer abruptly cancelled its 2.25GW Ocean Wind 1 & 2 arrays, leaving hundreds of millions of dollars in supply chain investments in limbo.

Former President Donald Trump spotlighted the project in his tirade against the industry during a campaign rally in the tourist city of Wildwood, vowing to stop the industry “on day one” of a second term, if elected.

Atlantic Shores 1 was awarded in New Jersey’s round 2 solicitation in 2021 for an estimated levelised price of $58.8/MWh, among the lowest ever for a US project, raising questions over its financial viability among analysts.

Despite not publicly seeking to higher offtake from regulator Bureau of Public Utilities, E&E News has reported that the developer is seeking to renegotiate its contract with the state. Atlantic Shores had declined to comment to Recharge.

Substation contract

Despite the challenges, the project signed a contract for substation design and construction with local engineering firm Riggs Distler.

The contract scope includes the engineering, procurement, construction, and installation of all new electrical equipment for an expansion of the 230kV Cardiff Substation in Egg Harbor Township, Atlantic County.

The upgrades are necessary to absorb power generated into regional transmission operator PJM’s grid.

“Atlantic Shores is thrilled to partner with Riggs Distler on making critical near-term investments at the Cardiff substation that support the local supply chain and create even more great-paying union jobs in Atlantic County” said Joris Veldhoven, Atlantic Shores’ CEO.

Atlantic Shores’ environmental impact statement (EIS) was approved last month by federal regulator Bureau of Ocean Energy Management (BOEM) for its entire lease area holding a total 3GW of potential capacity.

The developer expects its construction and operations plan (COP) approved by BOEM later this year, enabling it to begin construction.

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Published 26 June 2024, 22:04Updated 26 June 2024, 22:04
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