The offshore wind industry in New Jersey has taken another hit. On June 9, Atlantic Shores Offshore Wind formally requested to cancel its 1.5-gigawatt offshore wind project planned off the coast of Atlantic City. The company, a joint venture between Shell New Energies and EDF Renewables North America, pointed to mounting financial pressure and ongoing delays in federal permitting as the driving forces behind the decision.
Once expected to generate power for around 700,000 homes, the project has struggled under the weight of rising interest rates, supply chain complications, and inflation. These headwinds have led many developers across the U.S. to reconsider their offshore ambitions. But for New Jersey, where the state’s energy roadmap counts heavily on reaching 7.5 gigawatts of offshore wind by 2035, this withdrawal marks a significant setback.
The project had faced hurdles for months. A key air permit was revoked in March by the U.S. Environmental Protection Agency, effectively stalling all construction work. According to Atlantic Shores’ filing with the New Jersey Board of Public Utilities, the loss of that permit and wider uncertainty around federal approvals forced the developer to slash its workforce, cancel supply and logistics contracts, and freeze planned infrastructure projects—most notably at the New Jersey Wind Port and a proposed operations base in Atlantic City.
Earlier this year, Atlantic Shores had attempted to rebid the project under the state’s fourth offshore wind solicitation, aiming to realign with current economic realities. However, that process was suspended before it could bear fruit.
The domino effect of stalled projects isn’t limited to construction sites—it reaches deep into the logistics and project cargo sectors. Cancelled port developments, paused vessel charters, and interrupted freight movement are becoming common stories tied to offshore wind turbulence. For project freight professionals watching closely, this latest cancellation underscores how global economic currents can reroute even the most ambitious energy projects overnight.
The New Jersey offshore wind market, once seen as a cornerstone of the East Coast’s renewable buildout, now sits at a crossroads. Stakeholders across logistics, maritime, and construction will be watching closely as policy and market conditions evolve.
Source:New Jersey Digest
