Danish energy giant Orsted will pay New Jersey $125 million to scrap two offshore wind farms planned last year

The state Public Utilities Commission said Tuesday that New Jersey and Orsted have settled claims against each other stemming from the company’s decision last October to destroyed two wind farms off the state’s south coast.

The state said the $125 million it will receive will be used to support investments in wind energy facilities, component manufacturing facilities and other clean energy programs.

Before the projects were abandoned, Orsted made a $100 million commitment that it would have one of them, Ocean Wind I, built by the end of 2025. Orsted was also obligated to pay an additional $200 million. million USD for offshore wind energy development. industry in New Jersey.

A week after canceling the projects last fall, Orsted said that is trying to get rid of $300 million guaranteed value because it is no longer pursuing projects.

Orsted, in a statement to The Associated Press, said it was “satisfied” with the settlement, which it represents the company’s entire financial obligation to the state.

The deal, along with other moves announced by New Jersey on Tuesday, “underscores New Jersey’s commitment to offshore wind energy and the industry’s bright future in the Garden State,” it said.

“While we advance clean energy projects throughout the regionWe look forward to continuing our valued partnership with New Jersey stakeholders,” the statement read.

The company did not say whether it plans to propose future projects in New Jersey.

But Jeff Tittel, a longtime environmentalist and retired president of the New Jersey Sierra Club, called the deal with Orsted “a sellout.”

“The governor said they will be responsible for the entire $300 million they owe the state for their failed project,” he said. “They are being given a free pass, paying less than half, of which New Jersey is losing $175 million. This is a bad deal for New Jersey.”

The settlement announcement was one of several that Democratic Gov. Phil Murphy’s administration made Tuesday related to offshore wind.

The state said it is conducting a follow-up call for additional offshore wind projects from the third quarter of 2026 to the second quarter of 2025. New Jersey’s current solicitation closed on July 10.

The state also said it is pausing plans to coordinate transmission planning for offshore wind projects with regional grid operator PJM Interconnection due to new rules from federal energy regulators can affect plans and costs.

“Offshore wind development remains a once-in-a-generation opportunity that will deliver significant economic and environmental benefits throughout the Garden State,” Murphy said in a statement. “At this critical turning point for the industry both in New Jersey and across the country, it is critical that we remain committed to delivering on the promise of thousands of family-supportive, union-free, and non-union jobs. cleaner air for generations to come.”

Orsted wiped out $4 billion last fall, largely due to costs related to the cancellation of two projects in New Jersey. The company cited supply chain issues, inflation and failure to obtain enough government tax credits.

Current Three offshore wind power projects received preliminary approval in New Jersey.

The state is home to many groups vehemently opposed to offshore wind, who say the projects are too expensive and potentially harmful to the marine environment.

Protect Our Coast NJ said the move to accelerate offshore wind contracts “reflects the changing political landscape in Washington and New Jersey,” calling Murphy’s clean energy goals “arbitrary and unrealistic ”.

Advocates say this is an important way to move away from burning fossil fuels that contribute to environmental pollution. climate changes.


News 7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button