US President Donald Trump’s executive order on offshore wind has led to its first major consequence: oil giant Shell abandoning a major New Jersey project. The company, which co-owns the Atlantic Shores project, cited increased competition, delays, and market changes in writing off a nearly $1 billion investment.
The Atlantic Shores project, which would generate enough power for 1 million homes, is still under contention, with partner EDF-RE Offshore Development maintaining its commitment to the project. The order issued by Trump’s administration has brought uncertainty to the market, making it less attractive to investors.
New Jersey aims to generate 100% of its energy from clean sources by 2035, and the Biden administration had previously approved plans for the Atlantic Shores project in two phases. However, construction has not yet begun due to the regulatory changes imposed by Trump’s executive order.
Experts say that offshore wind farms are crucial in addressing climate change, as they can replace fossil fuel plants if paired with battery storage. The decision made by Shell is a significant blow to the project, and it remains to be seen whether EDF-RE Offshore Development will continue with the Atlantic Shores project despite the uncertainty.
The Biden administration’s goal of deploying offshore wind energy is part of its efforts to combat climate change. However, Trump’s executive order has raised concerns about the future of offshore wind projects in the US.
Source: https://apnews.com/article/wind-energy-offshore-turbines-trump-executive-order-new-jersey-121fe7a76529fcf9ce969868dda6283e