Diversifying oil major Shell and EDF Renewables North America have acquired a lease off New Jersey that could enable them to develop up to 2.5 GW of offshore wind.
The companies have formed a 50/50 joint venture, Atlantic Shores Offshore Wind, to codevelop the OCS-0499 lease area in the New Jersey Wind Energy Area. The transaction is subject to regulatory approvals. Construction is subject to positive final investment decision.
The lease area, some 183,353 acres about eight miles off the coast of Atlantic City on the US Outer Continental Shelf, has strong and steady wind resources in relatively shallow water, close to large population centres with associated electricity demand.
Shell’s vice president wind development Dorine Bosman said, “Shell has bold ambitions to grow our renewable power business and we see great potential in US offshore wind.
“Gaining access to this acreage in New Jersey complements our successful entry to Massachusetts and our existing renewable generation business. Building on the strength of our brand and global presence allows us to continue providing our customers with more and cleaner energy.”
EDF Renewables North America president and chief executive Tristan Grimbert said, “The opportunity supports the EDF Group’s aim to double global renewable capacity to 50 GW by 2030. It solidifies EDF Renewables’ ambitions to leverage its depth of experience in the European offshore wind market in the emerging US market.”
He noted that the cost of offshore wind is falling and the US offshore wind industry is quickly advancing with strong federal and state support.
Atlantic Shores Offshore Wind will begin working to complete a site assessment plan and initiate formal development efforts on the site, and subject to a positive final investment decision, could bring the windfarm into operation by the mid-2020s.
The Offshore Wind Journal Conference in London on 5 February 2019 will address key issues including global market developments, increasing turbine sizes, floating offshore wind and industry regulations.