Atlantic Shores, which has federal approval to build two offshore wind farms off the coast of Atlantic City, says it remains committed to delivering New Jersey’s first offshore wind project even though its partner in the venture, Shell, is exiting and writing off its $1 billion investment.
Shell’s CFO, Sinead Gorman, told reporters Thursday the company’s fourth-quarter earnings included $2.2 billion in impairments, part of which was a $1 billion write-off for Atlantic Shores, according to Reuters and other business publications.
Shell owns half of the Atlantic Shores offshore wind development through a 50:50 joint venture with EDF Renewables, Atlantic Shores Offshore Wind, LLC.
Gorman said the project no longer aligned with the company’s capabilities or return goals and that it would seek to monetize its stake in the project, according to Reuters.
Atlantic Shores responded to the news by posting a statement on its website reaffirming its determination to complete the project, which would generate about 2,800 megawatts of renewable energy that will power about 1.1 million homes.
“Atlantic Shores is committed to New Jersey and delivering the Garden State’s first offshore wind project,” the statement said. “Business plans, projects, portfolio projections and scopes evolve over time – and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential.
“While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits.”
Several executive orders issued recently by President Donald Trump have caused confusion in the clean energy industry. Trump has temporarily withdrawn federal waters from consideration for offshore wind development and paused the issuance of new permits, approvals, and loans for all onshore and offshore wind projects.
Atlantic Shores received final federal approvals in October 2024 to construct two offshore wind farms in federally regulated waters 8.7 miles off the New Jersey coast near Atlantic City. The Atlantic Shores offshore wind projects 1 and 2 will include up to 200 offshore wind turbines, offshore substations to collect the electricity produced, and the associated cables buried beneath the seabed that are needed to transport electricity to shore.
The projects have received construction and operations plan approvals from the Bureau of Ocean Energy Management (BOEM), as well as a Clean Air Act permit from the U.S. Environmental Protection Agency. The projects also already have the needed approvals from New Jersey regulators.
