The New Jersey Board of Public Utilities (NJBPU) has awarded a combined 2,658 MW of offshore wind capacity to two industry teams
The projects in question are EDF/Shell’s Atlantic Shores Offshore Wind and Ørsted’s Ocean Wind II, bringing the state’s total planned capacity to over 3.7 GW and moving New Jersey closer to Governor Phil Murphy’s goal of 7.5 GW of offshore wind by 2035 and 100% clean energy by 2050. The award is the largest combined award in the US to date.
In a unanimous vote, the board awarded 1,510 MW of capacity to Atlantic Shores Offshore Wind and 1,148 MW to Ocean Wind II.
In addition to strong environmental and fisheries protection plans, each project has committed to investing in New Jersey’s burgeoning offshore wind industry by building new manufacturing facilities at the New Jersey Wind Port, utilising the foundation manufacturing facility at the Port of Paulsboro, creating jobs and injecting billions of dollars in economic benefits into the state.
New Jersey Governor Phil Murphy said, “Expanding New Jersey’s offshore wind industry is a major component of achieving our goal of 100% clean energy by 2050, while providing significant opportunities and economic benefits for our state.”
NJBPU President Joe Fiordaliso said, “We have a once-in-a-generation opportunity to establish New Jersey as the epicentre of a new industry that will provide tens of thousands of jobs and billions of dollars in economic benefits when we need it most.”
Each project includes a commitment to build a nacelle assembly facility at the New Jersey Wind Port. Atlantic Shores plans to partner with Vestas for the facility and Ocean Wind will collaborate with GE. Both projects will utilise the foundation manufacturing facility at the Port of Paulsboro.
Additional benefits to the region include a green hydrogen pilot facility from Atlantic Shores and a truck electrification pilot project at Port Newark from Ocean Wind.
Atlantic Shores will begin construction in 2024. It includes a 10-MW green hydrogen pilot with South Jersey Industries.
The OREC price awarded to Atlantic Shores is US$84.03 per MWh with a 2% annual escalator. Subject to contract signing and Ørsted’s final investment decision, Ocean Wind 2 is expected to be commissioned in 2029. The OREC price for Ocean Wind II is US$86.62. The project will be built in three phases with commissioning in 2028/29.