A significant shift occurred in the energy sector as Ørsted, a Danish energy company, terminated its Ocean Wind I and II projects off the New Jersey coast. Governor Murphy has expressed concerns regarding Ørsted’s reliability following the decision.
The company’s move to halt the wind farms, a reversal of their prior commitment to advancing the projects despite two months of delays, was attributed to factors including inflation, market volatility, and poor timing. Ørsted, which secured the project bid prior to the pandemic, faced unexpected increases in supply chain costs and interest rates; for instance, steel prices soared by 50% from the beginning of 2020 to the end of 2021.
In response, Denise Brush, Chair of the New Jersey Sierra Club Offshore Wind Committee said, “New Jerseyans want offshore wind. We want clean air, green jobs, and clean energy now if we are to avoid the worst impacts of climate change. This disappointing setback will only push us harder to strengthen our movement for clean energy, but we will not stop.”
The New Jersey administration emphasized that such additional expenses should not burden state ratepayers and highlighted the need to pursue cost-effective strategies for renewable energy initiatives, taking full advantage of federal clean energy funding.
Anjuli Ramos-Busot, Sierra Club New Jersey Chapter Director, stated that the Sierra Club remains dedicated to advocating for offshore wind development in the state, noting its significant benefits, including climate change mitigation, job creation, and community power supply. She clarified that the halt in development is financially driven, not the result of opposition from local groups or the fossil fuel industry. Ramos-Busot emphasized New Jersey’s commitment to overcoming economic obstacles and not letting them hinder the progress toward a cleaner state environment.
Denise Brush, Chair of the New Jersey Sierra Club Offshore Wind Committee, also commented, emphasizing the desire of New Jersey residents for offshore wind development to ensure cleaner air, job creation in the green sector, and a transition to renewable energy to combat the effects of climate change. She expressed that this impediment will serve to galvanize efforts toward achieving these energy goals.