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The Murphy administration on May 28 announced several developments pertaining to New Jersey’s offshore wind efforts, including a settlement with Danish company Ørsted and an acceleration of the state’s project solicitation schedule.

According to the governor’s office, the $125 million settlement between the state, the New Jersey Board of Public Utilities and Ørsted follows the company’s decision to pull the plug on Ocean Wind 1 and 2 last fall.

“Pursuant to the settlement, the state and Orsted agreed to release claims against each other arising out of or related to the Ocean Wind projects and the state will receive $125 million,” the governor’s office said in a statement. “The funds will be used to support investments in qualified wind energy facilities, investments in offshore wind component manufacturing facilities, and other clean energy programs to achieve the state’s clean energy goals under the Energy Master Plan.”

That figure is less than the $300 million that was at the center of the discussion about this issue when Ørsted made its decision last year. The company had deposited $200 million into escrow and posted an additional $100 million as a guarantee to build the project.

“We are going to fight tooth-and-nail to keep this money,” Gov. Phil Murphy told reporters on Nov. 3. “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 Ørsted 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.”

Murphy’s latest response

Murphy was asked about the settlement on Tuesday during his monthly News 12 New Jersey call-in show by host Eric Landskroner.

“I don’t want to necessarily get into the nitty-gritty details – but we settled. They are going to pay us $125 million,” said Murphy. “And there’s some sense out there that Ørsted benefited from tax credits. They never did – not one penny. I’m still not happy – this was a significant bump in our offshore wind program.”

“And this was because they backed out of the Ocean Wind 1, Ocean Wind 2 projects,” said Landskroner.

“Correct,” said Murphy. “And we said we’re going to make them pay for that,” said Murphy. “And we have succeeded in that. I’m pleased with the amount. Again, they got nothing out of this.”

Ørsted weighs in

“Ørsted is pleased with NJ Board of Public Utilities’ offshore wind announcement today. Our joint settlement, as well as the announcement that the fifth offshore wind solicitation will have a new accelerated timeline, underscores New Jersey’s commitment to offshore wind and the industry’s bright future in the Garden State,” an Ørsted spokesperson told NJBIZ in a statement. “While we advance clean energy projects throughout the region, we look forward to continuing valuable partnerships with New Jersey stakeholders.”

Foot on the gas

The Murphy administration also announced an acceleration of its offshore wind solicitation schedule by expediting the projected opening of the fifth offshore wind solicitation from Q3 2026 to Q2 2025.

That announcement comes on the heels of the opening of the state’s fourth offshore wind solicitation earlier this month. That application window is open until July 10; and the award of two projects in January as part of the third offshore wind solicitation. And just last week, there were several notable developments with the state’s first offshore wind projects, Atlantic Shores Project 1 and 2.

“New Jersey’s economic and environmental future depends on the bold action we take today to secure billions of dollars in economic benefits and a significant reduction in emissions from the electric sector,” said NJBPU President Christine Guhl-Sadovy. “By accelerating New Jersey’s offshore wind development schedule, we underscore our commitment to realizing the industry’s full potential for the benefit of all New Jerseyans.”

The NJBPU also announced a pause of the Second State Agreement Approach for coordinated offshore wind transmission planning with regional grid operator, PJM Interconnection, citing a new FERC rule and PJM’s ongoing interconnection queue reform process. The state says these factors impact planning and costs – and that pausing allows the NJBPU staff an opportunity to fully evaluate the implications and how they would impact New Jersey’s transmissions needs and ratepayers.

By accelerating New Jersey’s offshore wind development schedule, we underscore our commitment to realizing the industry’s full potential for the benefit of all New Jerseyans.
– Christine Guhl-Sadovy, NJBPU President

“Offshore wind development remains a once-in-a-generation opportunity that will result in significant economic and environmental benefits throughout the Garden State,” said Murphy. “At this pivotal inflection point for the industry both in New Jersey and across the nation, it’s critical that we remain committed to delivering on the promise of thousands of family-sustaining, union jobs, and cleaner air for generations to come.”

Editor’s note: This story was updated at 5:30 p.m. ET to include the latest reaction from Gov. Phil Murphy.