The New Jersey Board of Public Utilities (NJBPU) announced the award of nearly 2.7 GW of offshore wind capacity to EDF and Shell joint venture Atlantic Shores and Ørsted’s Ocean Wind 2. 1,510 MW of capacity was awarded to Atlantic Shores, and 1,148 MW to Ocean Wind 2. The delas mark the largest combined offshore wind awards in the U.S. to date.
The awards of the new wind deals brings New Jersey’s total planned capacity to over 3.7 GW, following the award in 2019 of the 1.1 GW Ocean Wind 1, which is being developed by Ørsted in partnership with Public Service Enterprise Group (PSEG) who recently acquired a 25% equity stake in the project.
In 2019, Governor Phil Murphy set a goal for New Jersey to reach 7.5 GW of offshore wind capacity by 2035, as the state advances towards its goal of 100% clean energy by 2050. According to NJBPU, the projects are estimated to create 7,000 jobs across their development, construction and operational phases, generating $3.5 billion in economic benefits, and generating enough clean energy to power 1.15 million homes.
Governor Murphy said:
“Today’s award, which is the nation’s largest combined award to date, further solidifies New Jersey as an offshore wind supply chain hub and leader in the offshore wind industry in the United States.”
As part of the awards, Atlantic Shores and Ocean Wind 2 have each committed to significant investments, including the construction of nacelle assembly facilities at the New Jersey Wind Port, in addition to investments in job training, academic, community and manufacturing initiatives. Ørsted will partner with GE Renewables for the nacelle assembly facility, and Atlantic Shores will partner with MHI Vestas.
James Cotter, Shell General Manager of US Offshore Wind, said:
“This win by Atlantic Shores progresses Shell’s investment in renewable power and the communities we serve. Shell remains confident about the future of offshore wind and this latest achievement will help us deliver on our low carbon ambitions and help to provide more of the clean power options that the world needs.”
Martin Neubert, Deputy CEO and Chief Commercial Officer at Ørsted, said:
“It’s an honor to be selected again by the New Jersey Board of Public Utilities. With Ocean Wind 1 and 2 we will deliver over 2,200 MW of offshore energy to the Garden State while attracting leading manufacturers to New Jersey. Today’s award demonstrates Ørsted’s ability to deliver compelling bids and is an important next step towards reaching our recently announced target of globally installing 30 GW of offshore wind capacity by 2030.”
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