New Jersey’s Board of Public Utilities, or BPU, on Monday said it would not award any new wind projects, the latest wallop to the state’s big plans for the renewable energy source since President Donald Trump took office last month.

The move raises questions about whether the Atlantic Shores project, slated to be the state’s first wind farm, will ever be built.

The BPU’s decision came after global energy giant Shell announced last week that it had withdrawn from Atlantic Shores, which was expected to build hundreds of turbines that would combine to deliver 2,800 megawatts electricity, roughly enough to serve more than one million homes.

Shell’s announcement followed an executive order Jan. 20 that temporarily banned offshore wind.Shell was a 50-50 partner with EDF Renewables in Atlantic Shores. Later that day, Trump directly attacked New Jersey’s efforts to build a wind farm on social media.

The BPU cited “uncertainty driven by federal actions” in its decision.

Christine Guhl-Sadovy, BPU president, said that the board concluded “despite the manifold benefits the industry offers to the state, it would not be a responsible decision at this time.”

‘Significant challenges’

N.J. Gov. Phil Murphy, who made offshore wind a cornerstone of his ambitious goals for renewable energy, on Monday cited offshore wind “as a once-in-a-generation opportunity to create tens of thousands of jobs, drive an entirely new manufacturing supply chain, and secure energy independence.”

He continued, “However, the offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence … 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.”

It was unclear whether any offshore any wind projects, including Atlantic Shores, would ever be built in New Jersey in coming years or at all. But it appears unlikely any other projects in New Jersey’s offshore wind pipeline could move forward, given that none, except for Atlantic Shores, had received required federal permits.

Trump has vowed to place federal regulatory hurdles in front of any offshore future wind projects, including a permanent ban.

Atlantic Shores “stands ready to deliver on the promise of offshore wind to achieve American energy dominance, grow the economy, and protect the environment,” company CEO Joris Veldhoven said Monday in a statement to The Inquirer.

Veldhoven said he was “discouraged” by the BPU’s action, especially given that Atlantic Shores has already received key federal permits to proceed, including one for environmental impact and one for construction.

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

What did the BPU do?

The BPU did not cancel Atlantic Shores project outright but made it difficult for it to proceed.

The BPU has gone through four rounds of what it calls wind solicitations — proposals by wind energy developers to build projects that would meet state-specified capacities.

The BPU had awarded Atlantic Shores wind solicitations for two wind farms, known as Atlantic Shores 1 and 2, in prior wind solicitations.

Last year, the board opened a fourth round of wind solicitations that came during a financially shaky time for the industry.

Danish offshore wind developer Orsted had pulled out of its New Jersey project in 2023, citing higher than expected costs and supply chain issues. So there was less interest for New Jersey’s fourth round of solicitations. Of three bidders, two withdrew.

Atlantic Shores was the remaining bidder but had basically repackaged its previously approved projects to make them more financially tenable given inflation and supply chain issues.

On Monday, the BPU canceled the fourth round that Atlantic Shores was counting on.

However, the company noted Monday that it still has an agreement with the BPU in place for Atlantic Shores that grants valuable Offshore Wind Renewable Energy Certificates (ORECs).

‘Drill, baby, drill status quo’

Regardless, the BPU’s decision dismayed environmental groups that hoped offshore wind would help with climate change.

“The NJ Sierra Club is deeply disappointed to see the Atlantic Shores project not moving forward,” said New Jersey Sierra Club director Anjuli Ramos-Busot. “Once again, fossil fuel companies have taken favor from the Trump administration to continue with the drill, baby, drill status quo. Are we surprised?”

Ed Potosnak, executive director of the New Jersey League of Conservation Voters, said the BPU decision would cost New Jersey thousands of jobs while leaving residents with dirtier air.

“We are deeply disappointed in the decision by Gov. Murphy and his administration to cancel the fourth round offshore wind solicitation because it plays right into the hands of Donald Trump, who wants to stick New Jersey families with dirty air and expensive oil and gas energy to further enrich his billionaire friends,” Postnak said.

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