Atlantic Shores Seeks Termination of 1.5-Gigawatt Offshore Wind Contract Amid Federal Permitting Delays

Atlantic Shores Offshore Wind has filed a petition with the New Jersey Board of Public Utilities requesting consent to terminate its 1,509.6-megawatt offshore wind contract off the coast of New Jersey, citing legal and financial impracticability stemming from a federal permitting freeze and inflationary pressures. The request follows the withdrawal of a critical air permit by the U.S. Environmental Protection Agency and the suspension of the state’s latest offshore wind solicitation.

The developer argues that recent federal actions, particularly a January 2025 Presidential Memorandum halting new or renewed offshore wind permits, have jeopardized its ability to construct the project, despite years of permitting progress and significant capital investment. The air permit, issued in late 2024 and covering both the Atlantic Shores Project 1 and a second affiliated project, was remanded without a clear timeline for reinstatement, creating regulatory uncertainty and threatening project financing.

Originally approved in 2021 under New Jersey’s second offshore wind solicitation, the Atlantic Shores project was planned in two phases, with full commercial operation expected by 2028. The developer had also submitted a re-bid in the state’s fourth solicitation in mid-2024 to address rising costs, but that round was cancelled in early 2025. New Jersey decided not to proceed with an award in the fourth solicitation, citing Shell’s withdrawal from the Atlantic Shores project and uncertainty created by the federal pause on leasing.

Atlantic Shores has already invested over $300 million in the project, including local supply chain commitments and workforce development programs. However, without a path forward on permitting and financing, the company contends that continued development would be untenable. The petition, filed on June 4, seeks a full release from obligations under the Offshore Wind Renewable Energy Certificate Order, including any future claims by the state or ratepayer advocates.

The petition reflects broader turbulence across the U.S. offshore wind industry, where multiple projects in New Jersey, New York, and Massachusetts have been cancelled or restructured in response to supply chain bottlenecks, inflation, and regulatory headwinds. A decision regarding the petition by the New Jersey regulator is pending.