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Orsted scraps NJ offshore wind project.

Offshore Wind Giant Abandons ​New Jersey Projects,⁣ Dealing Blow to Biden’s Climate Goals

Renowned offshore wind developer Orsted has recently announced ⁢its decision to scrap​ two massive projects off the coast of New Jersey. Citing supply chain issues, inflation, and​ rising interest rates, among ​other factors, the Danish company’s move poses a significant setback to the Biden administration’s ambitious plan of utilizing offshore wind to combat climate change.

The administration’s goal was to generate 30 gigawatts of energy from fixed-bottom offshore wind farms by 2030,⁤ which could power 10 million homes, and 15 gigawatts from floating offshore wind infrastructure by 2035, potentially providing ‌power to 5 million homes.

New ⁤Jersey Governor Phil Murphy, a Democrat who has made offshore wind a key‍ focus of his climate agenda, expressed his anger and disappointment at Orsted’s decision.

While opponents of offshore wind in the Atlantic celebrated, those resisting similar projects⁢ on the Pacific coast⁣ found encouragement.

These opponents argue that the federal government is rushing‌ to⁢ “industrialize the ocean” without adequately studying the⁢ impact of offshore ‍wind on marine life and the environment.

The IRA Was Not ⁣Enough

Orsted claims that despite receiving substantial tax subsidies from the Inflation Reduction Act (IRA), which offers up to a 30 percent credit for projects commencing construction before 2026, the New Jersey project is no longer financially viable.

“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,” stated David Hardy,⁤ Orsted’s Group Executive Vice President and CEO of Americas, in a⁤ media release.

The company reported ⁣a $4.02 billion loss in asset value ⁤during the third quarter, with $2.8 billion of that attributed to its⁣ Ocean Wind ​1‍ project.

“As a result, we have no choice but to halt the development of Ocean Wind 1 and Ocean Wind 2,” Hardy added.

New Jersey‌ had made significant efforts to support Orsted and help overcome its ⁣financial challenges in completing the project.

In July, Governor Phil Murphy, ‌a Democrat, ‍backed ‍a ​bill that allowed ⁢Orsted to retain⁤ additional federal tax credits that would have otherwise been passed on to ⁤New Jersey utility ratepayers.

“Today’s​ decision by Orsted to abandon ⁣its commitments to New Jersey is outrageous and raises concerns about‌ the company’s credibility and competence,” expressed ‍Governor Murphy in a statement.

“Just ‍a few weeks‍ ago, the ‌company publicly⁣ affirmed the ⁤viability ‍and ⁤progress of ⁢the Ocean ‌Wind 1 project.”

The governor’s‌ administration⁤ views Orsted’s decision as a setback in their pursuit of achieving 100% clean energy by ⁢2035.

Orsted’s Ocean Wind 1 and 2 projects would have generated 2.2 gigawatts of energy,⁢ enough to power approximately 1 million homes. Governor Murphy’s ‌administration ⁣is currently exploring legal⁢ options to ​compel Orsted to fulfill its obligations.

Meanwhile, opponents of this massive project are celebrating the news.

Battling a ‍Boondoggle?

Congressman Jeff⁢ Van Drew (R-N.J.) criticized the wind farms, stating, “These Green New Deal-style wind farms were bad for our economy, our​ environment, and would have been a complete disaster for hardworking middle-class families in South ‍Jersey.”

He further accused Orsted of repeatedly seeking additional taxpayer funds and tax breaks ⁢while burdening ratepayers with soaring utility costs.

The project faced numerous legal challenges, with Cape May County and Ocean City, New ‌Jersey, filing multiple lawsuits against federal and state agencies ‍in an⁤ attempt to block the⁣ projects. Plaintiffs argued that the⁢ projects would harm the environment, the local economy,‍ and increase energy expenses.

The lawsuits accused ⁤federal agencies, including the Bureau of Ocean Energy Management (BOEM) and National ⁤Marine Fisheries Service, ‍of disregarding and violating laws designed to protect the environment and marine life,⁣ as well‌ as neglecting⁣ to ‍consider the negative impacts on the Jersey Shore’s tourism industry.

Congressman Van Drew praised​ the efforts of Cape May County and the local community, stating, “Orsted’s⁤ offshore wind projects could not have⁤ been stopped without the ‍help of Cape May ‍County and all the fantastic grassroots‍ efforts that emerged along the way, and most importantly,⁣ the people of South‍ Jersey.”

“While‍ we welcome this news, we must continue to build on this momentum and ensure that the remaining projects off the coast of New Jersey meet‍ the same fate,” he ‌added.

West Coast Battle Brewing

Meanwhile, ⁣opposition is growing against an⁢ even larger ⁢offshore wind project on the ‍Pacific coast. The Bureau of Ocean Energy Management (BOEM) recently concluded a 60-day public comment period‌ on proposals for two floating offshore ‌wind projects‌ in Oregon, and the reactions have been predominantly negative.

Two affected counties and one city have formally opposed the projects, garnering strong support ​from ‌local residents and those employed in the fishing and tourism industries.

“It’s clear to all of us that ⁤the numbers simply⁤ don’t add up, ‌but developers and the administration have been desperately trying ⁢to tell a different story,” remarked Heather ⁢Mann,‌ Executive Director of the Midwater ‌Trawlers Cooperative in Oregon.

“When it comes down to real money, ⁣these offshore wind energy dreams will crumble.”

“I hope that ⁤Oregon Governor Tina Kotek will recognize Orsted’s‌ decision for ‍what it is—a major ⁢warning⁣ sign urging us to proceed with caution,” added Mann. “Rushing into this boondoggle is not the right path forward.”

How​ can the⁢ concerns ​raised ⁣by opponents of⁣ offshore wind be addressed through research and mitigation ⁤measures?

Xt-base”>Federal Study Raises Alarms About Offshore Wind‍ Power’s Impacts on Fishing Industry and Marine Life

5/19/2023

The decision by Orsted to abandon its New⁤ Jersey offshore wind projects is a significant ⁣blow ‍to the Biden administration’s ambitious climate goals. The administration aimed to generate ​a substantial amount of energy from⁢ offshore wind farms, with the goal of combatting climate⁤ change and reducing carbon ‍emissions.

The abandoned ⁤projects were expected ‌to generate ⁢30 gigawatts of energy from⁢ fixed-bottom offshore wind ‍farms by 2030, which ‌could ⁤power ‍10 million homes. Additionally, the administration⁣ aimed to generate 15 gigawatts ‍from floating ​offshore wind infrastructure by 2035, potentially providing power to⁣ 5 million‍ homes.

New Jersey Governor Phil Murphy, who‍ has prioritized offshore wind as part of ‍his climate agenda, expressed disappointment and anger at Orsted’s decision. The governor ⁢had envisioned offshore wind projects as a key component‍ of the state’s renewable energy plans.

The abandonment of these⁤ projects has been celebrated⁣ by opponents of offshore wind in the‌ Atlantic ⁢region. These opponents argue that⁢ the federal government⁤ is moving too quickly to⁣ expand offshore wind development without ​fully considering the impact on marine​ life and ⁤the environment.

Orsted has cited supply⁢ chain issues, inflation, ⁤and rising interest rates as reasons for scrapping the New‍ Jersey ⁢projects. Despite receiving‌ tax subsidies from the Inflation Reduction ⁤Act (IRA), the company determined that the projects were no longer financially viable.

This⁢ setback highlights the challenges ⁢and complexities of transitioning to renewable energy sources. While offshore wind has the potential to provide significant amounts of‍ clean energy, there are logistical and financial‍ hurdles that must be overcome.

The decision by ‍Orsted underscores​ the need for further research and planning when it ⁣comes to offshore wind development. It is crucial to fully assess the potential environmental impacts and ensure that projects are economically sustainable.

While this setback is disappointing, ⁢it should not deter efforts to pursue renewable energy solutions. The⁢ Biden administration must continue to prioritize the​ development of offshore wind‍ projects and provide support⁤ to address ​the challenges faced by developers.

Additionally, it is important to engage in a thoughtful and inclusive dialogue with stakeholders, including communities, environmental organizations, and the fishing industry, to ensure that the expansion of offshore wind is done in a responsible and sustainable manner.

The concerns raised‌ by opponents of​ offshore wind must be taken seriously, and efforts should be made to‍ address‍ them through comprehensive research and ⁤mitigation measures.

Despite this setback,‍ offshore wind ​has the potential to play ​a significant role in the transition to clean energy. It is imperative that we continue to⁣ invest in the development of⁤ this renewable resource and work towards achieving the climate‍ goals set by the Biden administration.

While the abandonment of the New Jersey projects is‍ a setback,⁢ it should⁤ serve as a reminder of the challenges and⁣ complexities involved⁣ in transitioning to a sustainable energy future.

Renowned ⁤offshore wind developer Orsted recently announced its decision to scrap two massive projects off ‌the coast of New Jersey. This move poses a significant setback to the Biden administration’s ambitious plan of utilizing offshore wind to combat climate


Read More From Original Article Here: Orsted Cancels New Jersey Offshore Wind Project

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