Days after Shell dropped out of the one existing project, the state Board of Public Utilities announced New Jersey will be scrapping its fourth offshore wind solicitation as the market faces serious challenges.

Christine Guhl-Sadovy, president of the New Jersey Board of Public Utilities, said the board had it concluded that an award in New Jersey’s fourth offshore wind solicitation — despite the benefits the industry offers to the state — would not be a responsible decision at this time.

“Offshore wind still represents a once-in-a-generation economic development opportunity and is key to helping the region and country achieve energy independence,” she said in a statement.

The BPU said Shell’s recent backtrack from the existing Atlantic Shores project was a major factor in this decision, as was the Trump administration’s recent order pausing new permitting for projects.

Gov. Phil Murphy said he supported the decision.

“This is especially critical during a time when new energy generation is needed to provide our residents and business with reliable, cost-effective energy solutions,” said Murphy in a statement. “The offshore wind industry is currently facing significant challenges, and now is the time for patience and prudence. … I hope the Trump Administration will partner with New Jersey to lower costs for consumers, promote energy security, and create good-paying construction and manufacturing jobs.”

The wind industry in New Jersey also took a big hit today with the Economic Development Authority’s announcement that it will be reviewing options and alternatives for the New Jersey Wind Port in Salem County.

“While recent developments at the federal level and announcements from offshore wind developers are deeply disappointing, they were not unexpected,” said Tim Sullivan, the EDA’s CEO. “We have taken a cautious approach to further development of the port since 2023, and we have worked to identify alternative uses that would maximize the economic development, job creation, and financial potential of the site for the State.”

The Murphy administration said it hasn’t given up on the goal to reach 11 gigawatts of offshore wind electricity to the state by 2040, but the BPU said the solicitation faced setbacks when two of the three bidders withdrew, leaving Atlantic Shores as the only remaining participant. A recent executive order from the Trump administration called for an immediate halt to all offshore wind leasing and launched a review of existing projects, leaving the industry in limbo.