Houston, TX – Shell New Energies has formally exited the US offshore wind market, withdrawing from the Atlantic Shores Offshore Wind joint venture and transferring its 50 percent stake to partner EDF.
The decision marks the end of Shell’s participation in US offshore wind development.
The company said the move aligns with a broader strategy to redirect investment toward areas with higher returns and stronger alignment with its existing capabilities.
Key Points
- Shell has transferred its 50% interest in Atlantic Shores Offshore Wind to EDF.
- The withdrawal signals Shell’s complete exit from the US offshore wind sector.
- The move follows the 2025 termination of New Jersey’s OREC order for the Atlantic Shores Project 1.
Atlantic Shores development portfolio
Atlantic Shores Offshore Wind holds four active lease areas totaling more than 400 square miles. Two of the sites are situated roughly 10 to 20 miles off the Jersey Shore, between Atlantic City and Barnegat Light, with a third lease area positioned further offshore in the region known as the Bight.
Shell had paused its participation in the project in 2024, shortly after receiving federal approval in October of that year. The pause foreshadowed a broader reassessment of Shell’s offshore wind investments amid shifting market conditions and rising costs across the industry.
Strategic realignment in power investments
Shell New Energies stated that the withdrawal is part of a larger effort to refocus its power business. The company aims to prioritize energy ventures where it can better leverage its scale, trading expertise, and infrastructure network to achieve stronger returns.
The company’s chief financial officer previously noted that Shell would take a “disciplined approach” to capital allocation within its renewables division, emphasizing projects with clearer profitability pathways.
Regulatory backdrop and market challenges
In August, the New Jersey Board of Public Utilities terminated the offshore renewable energy certificate (OREC) order initially granted in 2021 for the 1.5-gigawatt Atlantic Shores Project 1. That decision effectively ended the project’s eligibility for state-level incentives, significantly impacting its commercial outlook.
