Energy giant Shell has pulled out of the Atlantic Shores offshore wind project off New Jersey’s coast, citing market challenges and regulatory uncertainty following President Donald Trump’s executive order targeting offshore wind.
Shell, which co-owns the project with EDF-RE Offshore Development, announced it is writing off its nearly $1 billion investment. The company attributed its decision to increased competition, project delays, and shifting market conditions. “Naturally, we also take regulatory context into consideration,” spokesperson Natalie Gunnell said.
Trump’s order, issued on his first day in office, paused offshore wind lease sales, halted permit approvals, and directed officials to review existing leases for potential termination. The move has injected uncertainty into the sector, despite New Jersey’s ambitious goal of reaching 100% clean energy by 2035.
The future of Atlantic Shores remains unclear. EDF-RE says it is still committed to the project, which, if completed, would power one million homes. However, offshore wind opponents, including Rep. Jeff Van Drew (R-NJ) and advocacy group Protect Our Coast NJ, view Shell’s departure as a major blow, with some calling the project “dead in the water.”
The offshore wind industry has faced financial setbacks, with Danish energy company Orsted canceling two New Jersey projects in late 2023 over economic concerns. Experts warn that without strong policy support, further investment in U.S. offshore wind may stall.
The Biden administration had aggressively expanded offshore wind as part of its climate strategy, approving multiple projects and holding lease sales. With Trump’s policy shift, the industry’s future in the U.S. remains uncertain.