NEW JERSEY, NJ – Governor Murphy pledged to initiate a legal fight against Danish wind farm developer Orsted after the company abruptly abandoned its Ocean Wind 1 project in New Jersey. The company had previously made statements asserting the project’s viability.
“Today’s decision by Orsted 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 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 Orsted’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 Orsted fully and immediately honors its obligations.”
Murphy, in a press release, condemned Orsted’s decision, stating it questions the company’s credibility and competence. He revealed that New Jersey had safeguards in place, including a $300 million commitment from Orsted should its projects fail. The governor has directed his administration to review all legal avenues to ensure the company meets its obligations.
Murphy acknowledged the external challenges facing offshore wind projects, such as rising interest rates and inflation. Despite this setback, he assured that the future of offshore wind in the state remains robust, with a high number of bids for New Jersey’s third offshore wind solicitation.
“Ultimately, as we have seen in other states recently, offshore wind projects awarded prior to 2020 have been impacted by a combination of interest rate escalation, supply chain cost increases, and inflation. And while today is a setback, the future of offshore wind in New Jersey remains strong. In recent weeks we’ve seen a historically high number of bids into New Jersey’s ongoing third offshore wind solicitation, and the Board of Public Utilities will shortly announce two additional solicitations related to our first-in-the-nation State Agreement Approach to build an offshore wind transmission infrastructure,” he added.
In the press release, Murphy reiterated his commitment to establishing New Jersey as a global leader in offshore wind development, emphasizing its critical role in the state’s economic and clean energy future.
Murphy vowed to continue his wind energy agenda, despite the major setback.
“I remain committed to ensuring that New Jersey becomes a global leader in offshore wind – which is critical to our economic, environmental, and clean energy future,” the governor concluded.