Murphy's wind energy agenda on life support as shell takes $1 billion loss in new jersey pullout

TRENTON, N.J. — Days after U.S. President Donald Trump put a moratorium on offshore wind energy at the Jersey Shore, labeling it as a victory in New Jersey’s “War on Stupidity”, another company is pulling out.

‘You have finally won your war on stupidity,” Trump said while signing an executive order to stop all offshore windfarms off the New Jersey coast.

New Jersey’s offshore wind ambitions suffered another setback as Shell plc announced its withdrawal from the Atlantic Shores wind project, taking a nearly $1 billion write-off in the process. The move follows Ørsted’s abrupt cancellation of its Ocean Wind project last year.

In its January 30 earnings report, Shell disclosed a $996 million impairment tied to Atlantic Shores, a planned 2,800-megawatt wind farm consisting of 197 turbines off Long Beach Island and Brigantine. The energy giant cited financial concerns as the reason for its exit.

“We just don’t see that it fits both our capabilities nor the returns that we would like,” Shell Chief Financial Officer Sinead Gorman said in a call with reporters, according to Bloomberg. “So we took the decision to effectively write that off and pause our involvement.”

The withdrawal comes amid growing economic and political headwinds for offshore wind development. On January 20, President Donald Trump issued an executive order pausing offshore wind permitting in New Jersey for six months, calling it a victory in the “war on stupidity.”

Rep. Jeff Van Drew, a vocal critic of offshore wind projects, worked with Trump administration officials to help draft the order.

The industry has faced mounting challenges, including inflation, rising costs, and supply chain issues. In 2022, Shell was part of a record-setting $4.37 billion auction for wind leases in the New York Bight, but optimism in the sector has since waned. With two major wind developers now abandoning projects, New Jersey’s offshore wind future remains uncertain.

Governor Phil Murphy has not yet responded to the news.

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