New Jersey Gov. Phil Murphy remains undeterred in his pursuit of offshore wind development despite the recent withdrawal of two major projects by Ørsted. In a statement issued Wednesday, Nov. 29, Murphy announced that he has directed the state’s Board of Public Utilities to open the state’s fourth offshore wind solicitation in early 2024, inviting developers to submit project proposals.
“I have directed the BPU to take this action in recognition of the strong future of New Jersey’s offshore wind industry,” Murphy said in the statement. “New Jersey can – and will – continue to remain a burgeoning offshore wind development hub that attracts new projects and their accompanying economic and environmental benefits for generations to come.”
New Jersey has continued to push toward its goal of achieving a 100% clean energy economy by 2035, with offshore wind playing a crucial role.
However, the offshore wind industry has faced its share of challenges in recent months. Ørsted’s decision to cancel its two New Jersey projects was attributed to a combination of factors, including rising interest rates, supply chain disruptions, and difficulties in securing tax credits.
“We came in hot, we came in fast, we thought we could build projects that were inexpensive, large projects right out of the gate,” Group Executive Vice President and CEO of the Americas Region at Ørsted David Hardy said at an American Clean Power conference in October. “And it turns out that we probably still need to go through the same learning curve that Europe did, with higher prices in the beginning and a little slower pace.”