TRENTON, NJ – Danish wind energy company Orsted is in dire financial straits. Their stock value is tanking and they just pulled the plug on one of America’s most ambitious offshore wind energy projects, Ocean Wind I & II, off the coast of New Jersey.
As Democrat Governor Phil Murphy reels from the shocking news that has sunk his entire Energy Master Plan and green energy economy agenda, it’s uncertain if the state will get the $300 million owed to it by Orsted.
Murphy has already announced getting that money could involve a long and costly legal battle. He announced on Wednesday that all legal means will be explored, not only to get that money but perhaps even to force Orsted to build the project somehow.
That financial guarantee was touted by Murphy and Democrats as the insurance they needed, even as Orsted displayed signs of financial collapse months earlier.
New Jersey is already spending that money on a wind port in Salem County and infrastructure projects in Atlantic County.
But, a disclaimer in Orsted’s agreement with New Jersey says they don’t have to pay $100 million of that if they are held up in the process by permits, and that is now exactly what the company is claiming. According to Orsted, the EPA held up permits last year.
They most likely won’t voluntarily hand New Jersey $100 million for a project they canceled. The process will likely be a lengthy litigation process that could take years, and New Jersey could ultimately lose that battle.
“We’re bringing Orsted to the table to ensure the company fully honors its financial commitments,” Murphy said.
Now, Murphy is in a tight spot. He spent his administration forcing the shutdowns of nuclear and coal power plants, promising a Utopia of wind and clean energy. Now, New Jersey won’t have either energy source for quite some time.
Murphy said after those shutdowns, “A word without coal is cleaner and safer.”
Now, a world without coal and no wind energy on the horizon, is a world without energy.