TRENTON, NJ – Offshore wind energy will be a reality for New Jersey. According to Governor Phil Murphy, who is still reeling from a major setback after Danish wind energy company Orsted backed out of two major projects, Ocean Winds I and II, the project remains active and will push forward, but at a much slower rate.
Governor Murphy doesn’t know how or when but insists his wind energy initiative is still progressing. The problem is that the failed deal between Orsted and New Jersey is heading to the courts, and the process could take years to resolve. Both sides have indicated they are ready for the long legal battles ahead.
According to New Jersey, Orsted owes the state $300 million. It’s $300 million Governor Murphy intends to collect after blaming Orsted’s ill intentions for the breakdown. Orsted claims federal and state regulations were the reason for the project’s demise.
Murphy insists Orsted is at fault, paving the foundation for a good old-fashioned American court case that could take years to resolve.
“They are bad actors,” Murphy said. “There’s money on the table and we’ll fight like heck to keep or get, depending upon which bucket it’s in. It’s going to delay this.”
Orsted still owns those leases. New Jersey may have to fight to get them back into the hands of the Board of Public Utilities.
“I can’t tell you exactly how leases will get transferred [from Orsted to prospective new buyers],” he said. “It will take longer now, but it’s a costly bump in the road, and it will take time.”
Moving forward, Murphy says interest in offshore wind farm leases remains high and says the state will prevail and generate 1,100 megawatts to power millions of homes. He also says New Jersey’s wind farms will slow down the rising sea levels in the Garden State. It is a claim that cannot be verified scientifically as the impact of 1,1000 megawatts of wind energy will have relatively little, if any impact on slowing down global warming.
“It will create thousands of union jobs,” he added. “That remains a very good story for New Jersey.”
When asked if his ambitions lay dead in the water, Murphy responded, “Not only is it not dead, it is alive.”