In the latest sign of industry headwinds, the New Jersey Board of Public Utilities (NJBPU) announced Feb. 3 it was not making any awards in the state’s fourth offshore wind solicitation.

“The Board will not proceed with an award in New Jersey’s fourth offshore wind solicitation,” said NJBPU President Christine Guhl-Sadovy. “There were three initial bids in the fourth solicitation. However, two bidders withdrew and only Atlantic Shores submitted a best and final offer.”

As NJBIZ reported in July, Atlantic Shores rebid Project 1 – which already has Offshore Wind Renewable Energy Certificates (OREC) – bundled with Project 2. The effort has been slated as New Jersey’s first offshore wind farm. Officials said that the proposal aimed at providing a more resilient, competitive and sustainable path through the advanced permitting program.

Just last week, as NJBIZ also reported, Shell dropped out of the partnership for the Atlantic Shores project – with stakeholders affirming their commitment to moving the project forward. That development came on the heels of a Trump administration executive order clouding the sector’s future.

The New Jersey Economic Development Authority (NJEDA) also announced a strategic review of the New Jersey Wind Port in South Jersey Feb. 3 for potential alternative uses, given the sector uncertainties.

In rejecting the bid, the state cited several factors.

“A number of reasons led to this decision, notably Shell backing out as an equity partner in the Atlantic Shores project and backing away from the American clean energy market, as well as uncertainty driven by federal actions and permitting,” said Guhl-Sadovy. “The Board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time.”

Still committed

The NJBPU president stressed that offshore wind still represents a once-in-a-generation economic development opportunity — and is key to helping the region and country achieve energy independence.

“The Board is committed to working with Gov. Murphy and our sister state agencies to build a successful offshore wind industry in New Jersey,” said Guhl-Sadovy. “We are also deeply appreciative of Atlantic Shores’ work and their commitment to providing a cleaner and healthier future.”

In a statement, Gov. Phil Murphy echoed those sentiments.

“Developing the offshore wind industry in New Jersey is a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence,” said Murphy. “This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy.”

‘The time for patience and prudence’

But Murphy acknowledged the significant challenges the offshore wind industry currently faces.

“And now is the time for patience and prudence,” the governor said. “I support the BPU’s decision on the fourth offshore wind solicitation, and I hope the Trump administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”

In response to the announcement, a company spokesperson told NJBIZ that the recent outcome does not impact the existing OREC in place for Atlantic Shores Project 1. In a statement, CEO Joris Veldhoven said Atlantic Shores stands ready to deliver on the promise of offshore wind to achieve American energy dominance, grow the economy and protect the environment.

“We’re discouraged to see the conclusion of this solicitation without an awarded project,” Veldhoven said. “Atlantic Shores Project 1 holds distinct advantages of an advanced permitting program, existing supply chain investments already putting people to work, a mature interconnection plan, and a clear path to financing that made us the most competitive and deliverable project proposed in NJ4.”

Veldhoven said that while the governor’s commitment to reaching 100% clean energy by 2035 is genuine and commendable, he said that Monday’s announcement clearly put that goal at risk.

We’re discouraged to see the conclusion of this solicitation without an awarded project.
– Joris Veldhoven, CEO, Atlantic Shores Offshore Wind

“We look forward to working together during this dynamic and evolving landscape to identify future offtakes and opportunities to serve millions of homes with safe, reliable, renewable power,” said Veldhoven.

‘A disappointing setback’

Following the news, clean energy advocates put out a statement expressing their disappointment, while reaffirming their commitment to offshore wind.

“Today’s decision by NJBPU not to select a bid from the state’s fourth offshore wind solicitation, ‘despite the manifold benefits the industry offers the state,’ is a disappointing setback in the state’s journey toward a clean energy future,” the coalition of clean energy advocates said. “While this decision presents challenges, responsibly-developed offshore wind is essential to New Jersey’s energy future–one that relies on a renewable energy economy that is able to meet rising energy demands, keep costs down for consumers, and generate good-paying jobs across the state.”

“Despite today’s setback, in BPU’s own words: ‘Offshore wind still represents a once-in-a-generation economic development opportunity and is key to helping the region and country achieve energy independence,’” the statement continued. “New Jersey must continue to lead the way in building a sustainable, prosperous future for our residents.”

Sen. John Burzichelli, D-3rd District, described the decision as extremely disappointing.

“Atlantic Shores and other wind projects had the potential to create jobs, generate long-term economic activity and provide much needed, reliable sources of energy generation for New Jersey,” Burzichelli said in a statement. “South Jersey was well positioned to be the hub of a growing industry with facilities that assemble and supply many of the components for projects throughout the region, and to help the state meet its growing energy needs into the future. Unfortunately, it may be a future of lost opportunities.

“I hope there will be a future reconsideration so that we can reclaim the benefits this industry offers,” he added.

Stay with NJBIZ for the latest on this rapidly developing situation in the offshore wind sector.

Editor’s note: This story was updated at 9:17 a.m. ET Feb. 4, 2025, to include a statement from Sen. John Burzichelli.

Quick review:

The latest developments in the past week:

• Jan. 30: Shell withdraws from NJ’s first planned offshore wind project
• Feb. 3: New Jersey Wind Port project undergoing ‘strategic review’
• Feb. 3: NJBPU announced it was not making any awards in the state’s fourth offshore wind solicitation