Shell pulls out of major New Jersey offshore wind project amid shifting market
Oil giant Shell is abandoning its investment in the Atlantic Shores offshore wind project, citing market challenges, rising competition and regulatory uncertainty under President Donald Trump’s administration.
Jennifer McDermott reports for The Associated Press.
In short:
- Shell is walking away from its stake in the Atlantic Shores wind project, which could have powered 1 million New Jersey homes, though partner EDF-RE Offshore Development says it remains committed.
- Trump’s executive order halted offshore wind lease sales, paused approvals and permits and ordered a review of existing leases, raising uncertainty for developers.
- Shell is writing off nearly $1 billion in investment as offshore wind remains costly compared to other clean energy options.
Key quote:
“The potential uncertainty that the executive order has brought to the market, it cannot be ignored.”
— Coco Zhang, vice president for environmental, social and governance research at ING
Why this matters:
Offshore wind is seen as critical in reducing carbon emissions, especially along densely populated coastlines where energy demand is high. Shell’s exit signals growing industry hesitation, which could slow the transition to clean energy. This comes as developers grapple with inflation, surging material costs and increasing difficulty securing long-term agreements to sell electricity at competitive prices. These economic headwinds coincide with uncertainties in federal and state policies, leaving many to question the industry's ability to grow at the pace needed to meet ambitious clean energy goals.
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