New Jersey Democrats, led by Governor Phil Murphy, approved up to $1 billion in subsidies to entice a foreign company to build wind farms off the coast of Atlantic City. Now, the projects are dead.
Danish green energy giant Ørsted on Tuesday night said it was pulling out of New Jersey, citing “high inflation, rising interest rates, and supply chain bottlenecks.” The move comes as a significant blow to Murphy and Democrats in the State Legislature, who earlier this year approved an estimated $1 billion in taxpayer-funded subsidies to land the project. Murphy and other state officials promised that Ørsted would bring thousands of jobs to New Jersey as part of the governor’s green energy agenda.
Ørsted’s decision to scrap its New Jersey projects also reflects the challenges plaguing the Biden administration’s so-called clean energy revolution. President Joe Biden has funneled tens of billions of dollars in grants, loans, and subsidies to the green energy industry in an attempt to spur the use of electric cars, solar panels, and other green alternatives. But many of those alternatives have not caught on. Fifty-seven percent of Americans, for example, say they are not likely to make their next vehicle an electric one, according to a recent Yahoo Finance poll.
Murphy in a Tuesday statement condemned Ørsted’s decision as both “outrageous” and surprising, saying that the company “as recently as several weeks ago … made public statements regarding the viability” of its New Jersey projects. But Ørsted has long signaled that it may not be able to deliver in the Garden State, despite securing significant subsidies. In September, the company acknowledged major supply chain issues that it said could force it to “walk away from projects” in the United States.
Daniel Turner, the founder and executive director of energy advocacy group Power the Future, said Murphy’s “green dreams” met a “hard reality.”
“Wind power received billions in taxpayer support, yet we see project after project failing,” Turner said in a statement. “Governor Murphy can rage all he wants about getting back money from the company for coffers in Trenton, but the truth is the green agenda pushed by him and other militant leftists made today happen.”
Murphy did not respond to a request for comment. Ørsted directed the Washington Free Beacon to its Tuesday night statement.
Ørsted’s project has for months been a source of controversy in New Jersey. The state’s independent ratepayer group in July found the wind farm would bring increased utility costs for the state’s ratepayers, while Murphy himself in a September letter to Biden acknowledged the “significant” energy costs associated with the project.
“Instead of continued price declines, offshore wind faces cost increases in orders of magnitude that threaten States’ ability to make purchasing decisions,” the letter said. “Without federal action, offshore wind deployment in the U.S. is at serious risk of stalling because States’ ratepayers may be unable to absorb these significant new costs alone.”
New Jersey Republican congressman Jeff Van Drew, a leading opponent of the offshore wind project, applauded the project’s cancellation.
“I am thrilled to see that Ørsted has decided to pack up its offshore wind scam and leave South Jersey’s beautiful coasts alone,” Van Drew said. “A tremendous win for South Jersey residents, our fisherman, and the historic coastline of the Jersey shore.”
While Murphy’s effort to bring Ørsted wind farms to his state’s coastline failed, New Jersey will likely face no shortage of climate activists to drum up support for future projects. That’s because Murphy in September unveiled a new taxpayer-funded office that aims to turn public school students into “climate leaders” through the state’s Climate Change Education standards, which incorporate mandatory climate change instruction into nearly every K-12 subject.
How do critics of Governor Murphy’s green energy agenda argue that Ørsted’s decision to scrap the projects reflects potential difficulties that were previously hinted at
Controversy and debate in New Jersey. The company had plans to build wind farms off the coast of Atlantic City, with the promise of bringing thousands of jobs and advancing Governor Murphy’s green energy agenda. However, Ørsted’s recent announcement to scrap these projects has dealt a significant blow to both the governor and Democrats in the State Legislature.
The decision by Ørsted to withdraw from New Jersey can be attributed to a combination of factors. The company cited high inflation, rising interest rates, and supply chain bottlenecks as the main reasons for its departure. These challenges are not unique to Ørsted or New Jersey but reflect the wider obstacles that the clean energy industry is facing in its efforts to transition to sustainable alternatives.
In an attempt to accelerate the adoption of clean energy, President Joe Biden’s administration has allocated significant funds to support the green energy industry. However, the Yahoo Finance poll mentioned in the article reveals that many Americans are still hesitant about embracing electric vehicles and other green alternatives. This lack of consumer interest poses a significant challenge to the success of the clean energy revolution.
Governor Murphy expressed his disappointment and surprise at Ørsted’s decision, condemning it as “outrageous.” However, critics argue that the company had previously hinted at potential difficulties in delivering the projects, despite securing substantial taxpayer-funded subsidies. Ørsted had previously acknowledged supply chain issues that could potentially lead to project cancellations.
Daniel Turner, the founder and executive director of energy advocacy group Power the Future, stated that Murphy’s “green dreams” have encountered a harsh reality. He criticized the failure of numerous wind power projects despite receiving substantial taxpayer support. Turner attributed the downfall of Ørsted’s projects to the green agenda pushed by Murphy and other leftists.
While Governor Murphy has yet to respond to Ørsted’s announcement, it is clear that the company’s decision has major implications. The scrapped projects not only mean a loss of potential jobs and economic growth for New Jersey but also highlights the difficult road ahead for the clean energy industry in the United States.
In conclusion, the withdrawal of Danish company Ørsted from wind farm projects off the coast of Atlantic City is a setback for New Jersey’s green energy agenda. The challenges faced by Ørsted mirror the broader difficulties confronting the clean energy revolution in the United States. Despite significant government support, the adoption of clean energy alternatives such as electric vehicles has been slower than expected. Ørsted’s departure serves as a reminder that the path to a sustainable future is not without obstacles and requires careful consideration of various factors, including economic viability and consumer demand.
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