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As the new week begins – election week – the ripple effects of Ørsted‘s recent cancellations of Ocean Wind 1 and 2 are still being felt here in the great Garden State.

The aftermath of this situation, which was already a hot-button and key election issue, especially at the Jersey Shore, continues to play out in real-time. Criticisms, harsh rhetoric and finger-pointing have all stemmed from the abrupt decision by Danish energy company Ørsted to pull the plug on the two offshore wind projects it was slated to develop off the coast of South Jersey.

Republicans have continued to hit hard on this issue since the news broke on the evening of Oct. 31, calling for more answers from the Murphy administration on everything from when they knew that Ørsted was calling the projects off, to the status of land leases/easements, to how much taxpayer money has been used throughout this process.

They are also calling for legislative hearings on the matter.

“Gov. Murphy and Trenton Democrats must account for all the money that has been squandered on their failed extreme energy policy,” said Senate Minority Leader Anthony Bucco, R-25th District, in a statement on Nov. 3. “By turning a blind eye to the warning signs that this program was failing and continuing to rush the process along, Murphy and the BPU [New Jersey Board of Public Utilities] failed to close the deal, and now the state risks losing $300 million. It’s like Gov. Murphy is playing checkers while Orsted is playing chess.”

“Taxpayers shelled out almost $1 billion for infrastructure to support wind farm owners who then walked away. An additional billion would have been wasted in tax credits for Orsted, which they thankfully won’t be getting – so we’re told,” said Sen. Mike Testa, R-1st District, on Nov. 3.

During a gaggle with reporters following a Nov. 3 announcement about the Netflix development project at Fort Monmouth, Gov. Phil Murphy addressed the controversy regarding that $300 million – which includes $200 million that was deposited into escrow and an additional $100 million posted by Ørsted as a guarantee to build the project – saying that the state is gearing up for a fight.

“We are going to fight tooth-and-nail to keep this money,” Murphy told reporters. “I am really angry at these guys. They have really badly behaved, let down a lot of folks. And I just cannot tell you how angry I am at these folks. There is this myth out there that we gave them some money. The opposite is true. We have not given Orsted one dime, nor will we. They have – in two separate buckets – $300 million that we are going to fight like hell to keep. I assume it is going to be a legal battle by them – but they did not do what they said they were going to do. And we are going to make them pay for that.”

There is this myth out there that we gave them some money. The opposite is true. We have not given Orsted one dime, nor will we.
– Gov. Phil Murphy

Murphy continued by criticizing anyone who is applauding this decision by Ørsted, and reiterated his administration’s commitment to forging ahead on offshore wind and its ambitious clean energy goals.

“There were folks out there applauding this – for reasons that are beyond my comprehension,” said Murphy. “By the way, this industry is going to keep going. The BPU’s got a third solicitation that they are dealing with right now. By all accounts, there is an enormous amount of interest. So, while there have been a lot of real supply chain and inflation issues in the offshore wind industry — that’s for real. And there have been bumps in the road — I get that. But there is a lot of interest in participating in our program. And this will continue to be a legacy, important industry for us.”

‘What’s plan B?’

The governor pushed back further on those applauding Ørsted’s move, posing two questions for celebrants.

“Are you opposed to thousands of union jobs? Because that is what a project like this entails,” said Murphy. “And secondly, what is your other idea for South Jersey’s economy? What’s plan B? I would like to know what plan B is.

“This is a gamechanger. So, not only it is clean energy. Not only does it create thousands of jobs – enough to power four-and-a-half million homes – it is a game-changer in the state’s economy, including in South Jersey,” the governor continued. “Those folks need to be called out for applauding this. The good news is – while I am angry about this, while this is a big bump in the road – the offshore wind industry is alive, well, and will continue to be one of the big industries in the state moving forward.”

Those grassroots activist groups, though, continue to applaud the announcement from Ørsted – and vow to continue to fight against offshore wind along the East Coast.

“We are in this for the long haul, and we are not going away,” said Keith Moore of Defend Brigantine Beach, who is among a group of 11 grassroots organizations that put out statements following the announcement. “We will fight to stop this every step of the way – in the court of public opinion and in the justice system.”

“New Jersey was rushing too fast to implement offshore wind programs without doing its due diligence both in terms of the partners it was choosing to enter into contract with and the impact that these turbine systems and their construction are and will have on marine mammals, coastal communities and their economies, and public safety,” said David Shanker, a New Jersey-based spokesperson for Green Oceans. “Orsted’s proposed Jersey Shore projects were going to cost taxpayers all while failing to impact global warming. We hope our elected officials will make the most of this major warning sign and cease the reckless and rapid industrialization of the Garden State’s greatest gem, our shore.”

As for that legal fight that Murphy referred to, buzz began to grow late Nov. 3 about Orsted tapping powerhouse former Attorney General Chris Porrino, a partner and chair of the Litigation Department at Lowenstein Sandler, to represent the company in such a fight.

An Ørsted spokesperson noted to NJBIZ that Porrino has been on the company’s legal team – serving in various ways for about a year.

Ørsted had no new comment about the situation.

This story continues to be fluid. Please stay with NJBIZ for the very latest as things develop.