The oil and gas behemoth Shell is reportedly withdrawing from a significant project off the coast of New Jersey, marking the first significant repercussion of President Donald Trump’s early steps against offshore wind generation.
Citing heightened competition, delays, and a shifting market, Shell informed The Associated Press that it is abandoning the project.
The massive Atlantic Shores project, which Shell co-owns, has the majority of its permits and, if all phases are finished, would provide enough electricity for one million homes. For one-third of New Jersey households, that is sufficient.
Although partner EDF-RE Offshore Development claims it is still committed to Atlantic Shores, it is uncertain if Shell’s decision would end the project.
Trump issued an executive order on his first day in office that temporarily suspended all lease sales in federal seas, halted licenses, permits, and loans, and singled out offshore wind for contempt.
The directive, which Shell may be particularly interested in, instructs administration officials to examine current offshore wind energy leases and determine whether there are any valid grounds for terminating them.
In Europe and, more recently, Asia, large offshore wind farms have been producing power for thirty years. Because they can replace fossil fuel plants when combined with battery storage, experts view them as a crucial component of combating climate change.
By 2035, New Jersey wants all of its energy to come from non fossil fuel sources.
Although work has not started, the Biden administration approved plans in October to build the Atlantic Shores project in two parts.
Shell’s decision was hailed by offshore wind opponents, who are especially outspoken and well-organized in New Jersey.
The executive order was drafted with assistance from New Jersey Republican Representative Jeff Van Drew. According to him, Shell’s choice is a “big win” for the economy and shoreline of New Jersey.
A roughly $1 billion investment is being written off by Shell. On Thursday, it made the announcement while revealing a 16% drop in full-year earnings from $28.3 billion to $23.7 billion. Oil and gas make up the majority of its operations.
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