The Biden administration has approved the Record of Decision for the Ocean Wind 1 offshore wind project, signaling a major milestone for New Jersey’s first offshore wind farm.
The action Wednesday by the Bureau of Ocean Energy Management in the Department of the Interior marks the third approval for a commercial-scale offshore wind-energy project in the United States, with two wind farms already under construction off Massachusetts and Rhode Island.
Ocean Wind 1 remains on track to begin onshore construction this fall, with construction ramping up in 2024. The project, located about 13 nautical miles southeast of Atlantic City, is expected to be capable of powering over 380,000 homes when operational. Ørsted is expected to receive another federal approval for its construction and operations plan in September.
“Ocean Wind 1 is on the cusp of making history as construction on New Jersey’s first offshore wind farm is set to begin in a few short months, delivering on the promise of good-paying jobs, local investment and clean energy,’’ said David Hardy, group executive vice president and CEO Americas at Ørsted.
Federal tax credits approved
For Ørsted, federal approval comes less than a week after the Danish energy giant won final legislative approval from New Jersey to obtain lucrative federal tax credits that could help resolve fiscal challenges facing the offshore-wind sector, including rising borrowing costs, inflation and supply chain constraints. Gov. Phil Murphy is expected to sign the bill Thursday in Paulsboro, where foundations for the wind turbines will be manufactured.
“By preparing to begin construction this fall, Ocean Wind 1 will help bring New Jersey one crucial step closer to achieving a 100% clean energy economy by 2035 and 11,000 megawatts of offshore wind power by 2040,’’ Murphy said in a statement.
Ørsted plans to construct up to 98 wind turbines and as many as three offshore substations within its lease area off southern New Jersey.
The Murphy administration is banking on offshore wind providing approximately 27% of the state’s electricity as it moves away from its reliance on fossil fuels and confronts a worsening climate crisis.
Under the decision by the BOEM, the federal regulators will document an extensive range of monitoring and mitigation measures that Ocean Wind will undertake to reduce the potential impacts to protected species, marine mammals, sea turtles and Atlantic sturgeon. These measures include vessel speed restrictions and clearance zones during construction.
What’s killing the whales?
In recent months, there have been a number of dying whales and other marine mammals washing ashore on beaches in New Jersey, sparking calls for a moratorium on new offshore-wind projects from opponents, congressmen and local officials.
Ørsted plans to construct up to 98 wind turbines and as many as three offshore substations within its lease area off southern New Jersey. The project is expected to create more than 3,000 jobs through its three-year construction cycle.
“Ocean Wind 1 represents another significant step forward for the offshore wind industry in the United States,’’ said BOEM Director Liz Klein. “The project’s approval demonstrates the federal government’s commitment to developing clean energy and fighting climate change and is a testament to the state of New Jersey’s leadership in supporting sustainable sources of energy and economic development for coastal communities.’’
Clean-energy advocates hailed the approval by BOEM.
“Every responsible offshore-wind project moves us toward our clean-energy future, which in addition to climate and economic benefits, will also improve our air quality, which for too long has disproportionately impacted low-income communities and communities of color,’’ said Allison McLeod, senior policy director for the New Jersey League of Conservation Voters.
“The time to take action to protect our environment is now — climate change is the greatest existing threat to our state and the development of offshore wind off the Jersey Shore is our best hope to power our state with clean renewable energy,’’ said Doug O’Malley, director of Environment New Jersey.
— Editor’s note: Ørsted is a financial supporter of NJ Spotlight News.
