Atlantic Shores Offshore Wind has requested the New Jersey Board of Public Utilities (NJBPU) to terminate the existing offshore renewable energy credit (OREC) order from 2021 for 1,509.6 MW at Atlantic Shores Project 1.
The developer, set to make a final investment decision (FID) this year, cites the withdrawal of the Air Permit for review as a key reason for seeking contract termination.
In a petition filed on 4 June, Atlantic Shores Offshore Wind, a joint venture between EDF Renewables and Shell, states the project cannot proceed legally without the Air Permit and lacks viability under current terms.
Despite reaching significant milestones, such as securing federal permits and completing supplier agreements, the project faces challenges. The withdrawal of the Air Permit and the Presidential Wind Memorandum on 20 January, affecting federal actions, have impacted project feasibility.
Atlantic Shores had begun financing due diligence and bank sounding with responses from over 45 banks for a planned 2025 financial close. The developer rebid the project in New Jersey’s fourth solicitation for better terms, but the NJBPU cancelled it due to federal uncertainties.
Shell paused its involvement, writing off USD 996 million in Q4 2024. Despite this, Atlantic Shores (EDF Renewables) remains committed to delivering New Jersey’s first offshore wind project.
Oceantic Network noted that the petition reflects the unpredictability of federal permitting, not project cancellation. Senior Vice President Stephanie Francoeur emphasized the need for federal action to ensure offshore wind development.
Original Story at www.offshorewind.biz