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Shell walks away from major New Jersey offshore wind farm

News 12 New Jersey spoke with Republican Rep. Chris Smith about Shell’s decision.

News 12 Staff

Jan 31, 2025, 7:01 PM

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Oil and gas giant Shell is walking away from a major project off the coast of New Jersey.

Shell told The Associated Press it is writing off the project, citing increased competition, delays and a changing market.

“Naturally we also take regulatory context into consideration,” spokesperson Natalie Gunnell said in an email.

Shell co-owns the large Atlantic Shores project, which has most of its permits and would generate enough power for 1 million homes if both of the two phases were completed. That’s enough for one-third of New Jersey households.

RELATED: Offshore wind projects off Jersey Shore may be impacted by Trump's executive order

RELATED: GOP Rep. Van Drew says he is working with Trump administration on new offshore wind ban

President Donald Trump signed an executive order with a temporary halt on all offshore wind lease sales in federal waters and a pause on approvals, permits and loans. The order directs administration officials to review existing offshore wind energy leases and identify any legal reasons to terminate them.

News 12 New Jersey spoke with Republican Rep. Chris Smith about Shell’s decision.

“We have to ensure that the project is dead. You know, I've been asking the hardest questions about how these offshore poles and the spinning of the poles will cause irreparable damage to radar. You know, of course, it'll eviscerate our environmental system, particularly below the water, whether the whales or the entire ecosystem, and the impact on the shore itself will be catastrophic,” Smith said.

New Jersey has set a goal of generating 100% of its energy from clean sources by 2035.

Gov. Phil Murphy and the state Department of Environmental Protection have said there does not appear to be any connection between a series of dead sea life off the Jersey Shore in the past two years and offshore wind projects.

The Associated Press wire services contributed to this report.

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