Ørsted’s surprise decision to abandon the Ocean Wind offshore wind projects off the coast of Cape May County has dealt a serious blow to the Murphy administration’s clean-energy transition plans. The Danish energy giant cited supply chain issues, inflation, high interest rates and other economic forces for its abandonment of the project — not opposition from local Shore communities. But that hasn’t stopped New Jersey Republicans from taking a victory lap.
Republican leaders at all levels of government on Wednesday railed against Murphy’s clean-energy goals, pointing to Ørsted’s move as a clear sign that New Jersey’s pursuit of offshore wind is ultimately a rip-off. Ørsted’s cancellation has put New Jersey Democrats on the back foot just days before an election in which all 120 seats of the state Legislature are on the ballot.
Gov. Phil Murphy has pledged to pursue all legal options to ensure that $300 million Ørsted had already committed to the state will be collected. Environmentalists who have supported the wind industry stressed that no subsidies had been paid out to the developer, and that developing offshore wind remains as important as ever in a rapidly changing climate.
Commenting on Ørsted’s decision, Ed Potosnak, executive director of the New Jersey League of Conservation Voters, said, “New Jersey is going to lose out on benefits that were just around the corner — good jobs that would’ve been created in this new industry, reductions in air pollution and improvements to people’s health, reduction in asthma and cancer rates, as well as economic and energy security provided by homegrown energy off our shore.”
