NJ Offshore wind farms cancelled

[acabtp]

https://www.google.com/amp/s/www.nj.com/news/2023/11/developer-cancels-plans-for-2-nj-offshore-wind-farms-including-1st-planned-for-state.html%3foutputType=amp

[Broad Bill]

Personally this decision validates many people's concerns about the viability and feasibility of these projects. Aside from that, I'd like to know what bureaucratic Einstein negotiated a contract that deals with something as strategically unimportant as energy generation which allows the contractor to unilaterally back out. This is another reason why you don't put all your eggs in one basket with something as important as energy and outsource it to a foreign country or contractor you have limited to no control over. We live in a world governed by crooks and morons. The whales are celebrating tonight!

I'm sure Murphy is most pissed off because somewhere in this process his 401k probably just took a major hit as a result of Orsted's decision not to move forward with Ocean Wind 1 and 2. Talk about a cluster #$&! and a half.

Supply chain issues, project delays and rising interest rates are things every business on this planet is forced to deal with in today's business environment. None of them should be show stoppers, there's something else fundamentally wrong with wind farms that's not being disclosed, in my opinion.

[AndyS]

From the NJDEP website:

https://dep.nj.gov/offshorewind/

[Gerry Zagorski]

Interesting. Murphy must be steaming!!

[AndyS]

Funny how they adamantly denied any coalition between dead whales and this project, BUT when more dead whales washed ashore they cancelled the whole project, something is fishy here.

[acabtp]

nj.com link got paywalled
https://us.orsted.com/news-archive/2023/10/orsted-ceases-development-of-ocean-wind-1-and-ocean-wind-2

[1captainron]

Personally this decision validates many people's concerns about the viability and feasibility of these projects. Aside from that, I'd like to know what bureaucratic Einstein negotiated a contract that deals with something as strategically unimportant as energy generation which allows the contractor to unilaterally back out. This is another reason why you don't put all your eggs in one basket with something as important as energy and outsource it to a foreign country or contractor you have limited to no control over. We live in a world governed by crooks and morons. The whales are celebrating tonight!

I'm sure Murphy is most pissed off because somewhere in this process his 401k probably just took a major hit as a result of Orsted's decision not to move forward with Ocean Wind 1 and 2. Talk about a cluster #$&! and a half.

Supply chain issues, project delays and rising interest rates are things every business on this planet is forced to deal with in today's business environment. None of them should be show stoppers, there's something else fundamentally wrong with wind farms that's not being disclosed, in my opinion.
Don't worry about Murphy or any of those clowns...they made $$$$ selling short!!!

[Gumada]

Believe nothing of what you hear and only half of what you see....

[Broad Bill]

nj.com link got paywalled
https://us.orsted.com/news-archive/2023/10/orsted-ceases-development-of-ocean-wind-1-and-ocean-wind-2

If this country had a set of balls, all pending contracts with Orsted should be terminated immediately and this entire initiative should be reassessed before any decisions are made moving forward, none of which should include Orsted as the contractor of choice.

[Broad Bill]

Don't worry about Murphy or any of those clowns...they made $$$$ selling short!!!

I was really referring to lost kickbacks. Don't think even the Governor could short those although in politics anything is possible.

[Jigman13]

Rushing a project of this magnitude to a 2025 completion was asinine. You can't fast track something as major as this was supposed to be. Orsted saw the writing on the wall and bailed. I'm glad it's not happening. The whales can rest easy. It'd be amazing if the strandings come to a screeching halt.

[Broad Bill]

The whales can rest easy. It'd be amazing if the strandings come to a screeching halt.

Rest assured they will. In spite of billions of dollars in subsidies to companies like Orsted, the economics don't work. As of today in addition to the two major New Jersey farms just scrapped, wind farm projects have recently been cancelled in Massachusetts, offshore projects being discussed for Connecticut are being reconsidered and farms scheduled for NY are incurring substantial losses.

https://www.nbcboston.com/news/local/cancellation-of-2nd-big-mass-wind-energy-contract-approved/3150766/

https://www.timesunion.com/business/article/offshore-wind-developers-record-heavy-losses-new-18462019.php

Pretty amazing how a $100 billion dollar project can fall apart in less than a years time. Wait until you see the bailout Congress proposes for this mess along with other green energy initiatives the current administration has tried forcing on the consumer.

[Gerry Zagorski]

Project 1 and 2 which were off of Cape May are canceled but not sure about the Atlantic City/Barnegat Light area project mentioned below in bold.

Offshore developer cancels 2 NJ wind farms. Murphy slams decision



TOM JOHNSON, ENERGY/ENVIRONMENT WRITER | OCTOBER 31, 2023 | ENERGY & ENVIRONMENT



Ørsted cites inflation, supply chain challenges, rising interest rates



Ørsted, the winner of two bids to build offshore wind farms off the Jersey coast, is pulling out of its projects in a decision with huge ramifications for the state’s clean-energy goals.



The Danish company, the world’s biggest offshore wind developer, announced the decision Tuesday night prior to an earnings call in Denmark scheduled for Wednesday morning. The disclosure is the latest event to rock the emerging offshore wind sector over the past few months.



Offshore wind, a technology favored by states along the Eastern Seaboard as a way to fight climate change, is in upheaval as it faces soaring interest rates, supply chain constraints and other problems. All of that has soured offshore wind’s economic prospects for developers.



“Macroeconomic factors have changed dramatically over a short period of time, with high inflation, rising interest rates, and supply chain bottlenecks impacting our long-term capital investments,” said David Hardy, Group EVP and CEO Americas at Ørsted. “As a result, we have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2. We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a U.S. and global hub for offshore wind energy.”



Gov. Phil Murphy made offshore wind a cornerstone in his major goal to wean New Jersey off fossil fuels. But offshore wind has become a top political target and an issue in next week’s legislative elections amid false claims that prepping for construction has caused an increase in whale deaths along the Shore. Republican lawmakers who represent the region in Trenton and Washington seized on the issue, hosting public hearings and boosting opposition to what was once seen as an easy way to convert to renewable power.



Murphy: Ørsted decision is ‘outrageous’

Murphy on Tuesday blasted Ørsted’s move and promised a legal review of all the company’s existing deals with the state, agreements that saw it recently win a promise of $1 billion in tax credits.



“Today’s decision by Ørsted to abandon its commitments to New Jersey is outrageous and calls into question the company’s credibility and competence. As recently as several weeks ago, the company made public statements regarding the viability and progress of the Ocean Wind 1 project,” Murphy said in a statement. “In recognition of the challenges inherent in large and complex projects, my Administration in partnership with legislative leadership insisted upon important protections that ensure New Jersey will receive $300 million to support the offshore wind sector should Ørsted’s New Jersey projects fail to proceed. I have directed my Administration to review all legal rights and remedies and to take all necessary steps to ensure that Ørsted fully and immediately honors its obligations.”



Ørsted’s pullback also casts serious doubts about President Biden’s own ambitious goal to develop 40 gigawatts of offshore wind capacity by 2030 as well as New Jersey’s goal to build 11 gigawatts by 2035.



Ørsted’s announced cancellation leaves only one offshore wind project approved by the state: the Atlantic Shores 1,510-megawatt project 10 to 20 miles off the coast between Atlantic City and Barnegat Light.



Ørsted is still considering rebidding on a project in New York and still evaluating whether to proceed with a wind farm off the Maryland coast.



$1 billion in federal tax credits

In response to the economic tailwinds, offshore wind companies have sought the federal government to sweeten the level of federal tax credits available to developers.



This summer, Ørsted was awarded up to $1 billion in federal tax credits in a bill approved by the Democratic-controlled Legislature and signed by Murphy.



‘This is a devastating setback for offshore wind and Governor Murphy’s clean-energy agenda.’ — Jeff Tittel, longtime environmental advocate and supporter of offshore wind



Besides its two projects in New Jersey, Ørsted has offshore wind projects pending in at least six other states along the Eastern Seaboard. Ocean Wind I was expected to be New Jersey’s first offshore wind project, a 1,100 megawatt project located about 12 miles off Atlantic City. The company also had won approval to build another 1,148 MW project from the New Jersey Board of Public Utilities.



The company said the current market situation with supply chain challenges, project delays and rising interest rates has challenged offshore projects in the U.S., and in particular the Ocean Wind 1 project, which has led to significant impairments in Q2 2023. The impairments amounted to more than $4 billion, according to the company.



Ørsted boss: ‘We are extremely disappointed’

“We are extremely disappointed to announce that we are ceasing development of Ocean Wind 1 and 2,’’ said Mads Nipper, group president and CEO of Ørsted. “We firmly believe the US needs offshore wind to achieve its carbon reduction ambition, and we remain committed to the US renewables market and truly value the efforts of the US government to support the buildup of the offshore wind industry.’’



The company announced it would continue to move forward with the construction phase of Revolution Wind in Connecticut and Rhode Island.



The decision was not a total surprise, however, given the controversy over the project in recent months. Local officials and conservation groups have challenged the approval of the project in court. In addition, there have been growing concerns voiced by Republican lawmakers over the prospect of big spikes in customers’ energy bills.



“This is a devastating setback for offshore wind and Governor Murphy’s clean-energy agenda,’’ said Jeff Tittel, a longtime environmental advocate and supporter of offshore wind. “This is the way we were supposed to move forward.’’



The impact of Ørsted’s decision also is likely to influence other projects in New Jersey and elsewhere. In New York, Equinor and BP, another offshore wind developer, just announced a more than $800 million impairment on its project.



“The Energy Master Plan and administration’s approach to offshore wind was fatally flawed from day one. This is the sad but always inevitable conclusion to the story — the underlying math never added up and no amount of state or federal bailout money could change that fact,” said Affordable Energy for New Jersey spokesman Michael Makarski.

[Broad Bill]

This is a microcosm of how government works and in part why this country is on the brink of disaster. Hundred billion dollar decisions funded by tax payer dollars with unknown consequences being made that won't work and not one person will be held accountable. With the money involved with these projects, you know contractors aren't walking away and taking multi billion dollar write offs to earnings without good reason. Reasons the public will never hear.

Mr. Zagorski, Ocean Wind 1 and 2 I'm pretty sure are southern wind farms off Atlantic City, 1 involved the development of 98 turbines, and 2 slightly more. I wasn't aware there were farms off Sandy Hook cancelled as well. When did that happen?

[Gerry Zagorski]

This is a microcosm of how government works and in part why this country is on the brink of disaster. Hundred billion dollar decisions funded by tax payer dollars with unknown consequences being made that won't work and not one person will be held accountable. With the money involved with these projects, you know contractors aren't walking away and taking multi billion dollar write offs to earnings without good reason. Reasons the public will never hear.

Mr. Zagorski, Ocean Wind 1 and 2 I'm pretty sure are southern wind farms off Atlantic City, 1 involved the development of 98 turbines, and 2 slightly more. I wasn't aware there were farms off Sandy Hook cancelled as well. When did that happen?

I corrected that above in my post. Ocean Wind 1 and 2 were the ones canceled and they are down by Atlantic City/Cape May

[Chrisper4694]

Good

[Gerry Zagorski]

Hard to tell by the article but I wonder if any of the other companies with leases are still planing to move forward.

[Detour66]

Good I concur! Who wants to look at them on the open ocean horizon! Not Me!

[Broad Bill]

Hard to tell by the article but I wonder if any of the other companies with leases are still planing to move forward.

Here's the dilemma everyone is going to be faced with. Read the attached article. This isn't an Orsted or NJ issue, it's an industry issue impacting every coastal state with planned OSF being considered for development. Read the attached article.

https://www.canarymedia.com/articles/wind/the-us-offshore-wind-industry-faces-a-moment-of-reckoning.

These projects are going to continue being cancelled but they're not going away. They'll be rebid at significantly higher prices to address supposed economic issues with the contractors. Those costs will be passed on to consumers. Translated, instead of electric prices going up 500%, they'll go up 1000%. So all those EV's the big three auto makers are pumping out that no one's buying even with Biden's major incentives and subsidies to the manufacturers, the cost to operate them will far exceed traditional gas vehicles. Add to that legislation trying to convert stoves, home heating, leaf blowers, lawn mowers, snow blowers, chain saws, buses, trucks, generators etc. from gas powered to electric, well you get the point. We need green energy, but we need it released to the world gradually and in a thoughtful manner that's not going to bankrupt the country and put even more pressure on the average consumer who is already struggling to keep up with cost of living increases and out of control inflation.

[Jigman13]

And it'll all change once we have a new administration in office.

[togzilla]

Where’s the blind squirrel idiot with his posts???

[Pennsy Guy]

SSSHH, be quiet.

[Gerry Zagorski]

Hard to tell by the article but I wonder if any of the other companies with leases are still planing to move forward.

Based on this it looks like there is one project still alive, the Atlantic Shores.

What happens to NJ’s plans for offshore wind after Ørsted?



TOM JOHNSON, ENERGY/ENVIRONMENT WRITER | NOVEMBER 2, 2023 | ENERGY & ENVIRONMENT



Some Republicans accuse Murphy of pursuing wind agenda at any cost



New Jersey will have to wait a bit longer to see offshore wind turbines generating electricity along the coast.



That’s the consensus after Ørsted’s abrupt announcement this week that it was walking away from its two offshore wind projects, raising questions about the viability of the emerging industry and whether it should be the linchpin of New Jersey’s strategy to curb climate pollution.



The announcement late Tuesday by the Danish company also raises questions whether other offshore wind projects will run into similar economic difficulties. That’s become a problem for other developers up and down the Atlantic coast who have sought to renegotiate contracts amid supply-chain constraints, rising borrowing costs and permit delays.



The Murphy administration has vowed to press forward with other offshore wind projects despite calls for a pause by opponents, including Republican lawmakers who want an accounting of money spent on the project by Ørsted.



“Trenton Democrats wanted wind farms along the Jersey Shore so badly they didn’t care how much it cost New Jerseyans in higher electric bills,’’ said Senate Republican Leader Anthony Bucco. “We must realize that the fight over expensive wind farms and for an affordable energy future is not over yet.’’



Ørsted had hoped to complete its Ocean Wind I project by the end of 2025 or early 2026.



And then there was one

Atlantic Shores, a partnership between New Shell Energies and EDF Renewables, is the only remaining offshore wind project, projected to be operational in 2028. Four other projects are bidding to be selected in a third solicitation by the New Jersey Board of Public Utilities early next year.



In the wake of Ørsted’s announcement, environmental advocates rallied behind offshore wind as still crucial to fighting climate change.



“This is undeniably a gut punch for offshore wind,’’ said Doug O’Malley, director of Environment New Jersey. “If we don’t move forward on offshore wind, we’d end up relying on fossil fuels. Offshore wind is bigger than one company. There are other projects.’’



Others, however, questioned whether the public is willing to absorb higher bills to make the transition to cleaner energy.



‘This is undeniably a gut punch for offshore wind.’ — Doug O’Malley, Environment New Jersey



“These are expensive projects that require a large amount of investment not just offshore, but onshore as well,’’ said Paul Patterson, an energy analyst with Glenrock Associates in New York City. “This is a setback. I wonder just what the appetite will be to accept these higher costs.’’



Offshore wind is intended to provide approximately 27% of New Jersey’s electricity by 2050, according to the state’s Energy Master Plan. Solar energy is currently projected to supply about one-third, and the bulk of the rest is projected to come from nuclear power.



The Murphy administration envisions those technologies helping to decarbonize New Jersey, eventually reaching net-zero emissions in pollution from greenhouse gases. Fred DeSanti, executive director of the New Jersey Solar Coalition, agrees that is the way to decarbonize the economy, but has concerns.



Raising costs too quickly

“It comes down to political will and just how quickly we pursue it,’’ he said. “If you increase the cost too quickly, people will walk away and you won’t get it done.’’



But Kris Ohleth, executive director of the Special Initiative for Offshore Wind, a pro-industry campaign, argued New Jersey and other states relying on offshore wind may have no other choice.



“We really don’t have other choices,’’ she said. “There’s no other options for clean energy on that large of a scale. That’s why states keep going back to it.’’



Gov. Phil Murphy in the past day lashed out at Ørsted for pulling out of the two projects, both located about 15 miles off Atlantic City, calling the decision ‘’outrageous’’ and questioning the company’s credibility and competence. The governor also vowed to recover $300 million Ørsted posted as a performance bond if the project failed to be completed.



Ørsted will not benefit from a $1 billion federal tax credit awarded to the company by the Legislature and administration this past summer. The company only can take advantage of the credit if the project is built.



Clean Ocean Action, a conservation group, called for a halt in further offshore development. “It is all too much and too fast given the entire industry’s large-scale technological failures, supply-chain issues and major financial challenges, despite government bailouts,’’ the group said.

[Broad Bill]

https://www.reuters.com/business/energy/orsted-pulls-out-norway-offshore-wind-consortium-2023-11-13/

It's not just in the states wind farm development is being looked at under the microscope and whether or not these energy alternatives are economically viable and operationally feasible.

[Dawn Treader]

These offshore wind farms have been a dumb idea from the start for economic, operational, aesthetic and impact to marine life reasons.

Small Modular Reactors (SMRs) are safe, economically viable and operationally feasible, with one design already approved by the Nuclear Regulatory Commission. They are an excellent clean energy option, but currently politically incorrect.

Let’s hope for some sanity in US energy policy in the not too distant future. The key to solving so many economic problems.

[Jigman13]

Nuclear IS the way to go.