One of the most ambitious American offshore wind schemes, Atlantic Shores 1, appears to be unravelling after its developer formally asked New Jersey authorities to cancel key regulatory agreements. The move represents a major blow not only to the state's clean energy ambitions but also to the broader US offshore wind sector, which has faced growing political and economic turbulence.

The 1.5-GW project, located off the coast of New Jersey and intended to power hundreds of thousands of homes, had been plagued by delays, financial write-downs and political opposition.

The latest blow is that Atlantic Shores Offshore Wind, the developer, recently petitioned the New Jersey Board of Public Utilities (BPU) to withdraw from the Offshore Renewable Energy Certificate (OREC) framework established in 2021, citing a range of factors including “macroeconomic conditions” and actions by former President Donald Trump’s administration.

The petition, submitted earlier this month, requests the termination of the project's renewable energy credits and release from all related obligations. According to the company, recent policy decisions at the federal level – chiefly an executive order signed by Trump on the first day of his second term in January to halt offshore wind permitting and launch a sector-wide review – have introduced severe uncertainty.

The developer stated in the filing that “the project is no longer viable upon the terms and conditions set forth in the [Offshore Wind Renewable Energy Certificate] Order,” despite what it described as “diligent and good faith efforts” to move the venture forward.

Joris Veldhoven, CEO of Atlantic Shores Offshore Wind, in a statement acknowledged the significance of the withdrawal, calling it a turning point rather than a final chapter. “This filing marks the closing of a chapter, but not the end for Atlantic Shores,” he said. “Offshore wind continues to offer New Jersey a strong value proposition that includes thousands of good-paying jobs, stable power prices and real economic benefits.”

Veldhoven also framed the move as a strategic pause: “While no ratepayer money or subsidy was spent on Atlantic Shores Project 1, this reset period presents us an opportunity to ensure utility customers continue to get a fair deal for critical infrastructure delivery. And with record demand for electricity outpacing supply, one thing’s for sure: New Jersey needs more power generation.”

The company, a joint venture between France’s EDF Renewables and the UK-Dutch oil major Shell, had once touted the Atlantic Shores scheme as one of the most advanced offshore wind proposals in the state. It also held ambitions to develop a broader 2.8-GW offshore wind portfolio through its additional lease holdings.

In October 2024, Atlantic Shores had successfully secured Construction and Operations Plan (COP) approvals from the US Bureau of Ocean Energy Management (BOEM) for both phases of the project. These approvals should have represented a major milestone. However, the project’s trajectory soon shifted.

The first major blow came in January 2025, when Shell abruptly announced its exit from offshore wind development, effectively pulling its support from the Atlantic Shores venture. Shell registered a $1bn impairment tied to the project, while EDF followed suit in February, booking an impairment charge of roughly $980mn.

According to EDF’s financial disclosures, the charge reflected deteriorating project economics and heightened uncertainty. Shell’s retreat, which it described as part of a strategic pivot away from renewables, was followed by EDF’s own acknowledgment that Atlantic Shores was no longer commercially viable under its current conditions.

In March, matters worsened when the Environmental Appeals Board, part of the US Environmental Protection Agency (EPA), vacated a crucial air quality permit that would have allowed construction and operations to proceed. Atlantic Shores challenged the board’s decision, arguing it lacked “good cause,” but the board maintained it had “broad discretion to grant a voluntary remand”.

Atlantic Shores also failed to secure a new agreement through New Jersey’s fourth offshore wind solicitation, which closed in February without awarding contracts to any project. The company had submitted a revised bid during the round, but the BPU ultimately chose not to make any selections.

The political climate has also played a notable role. Trump, while campaigning in New Jersey in 2024, singled out Atlantic Shores as a target of his anti-wind rhetoric. “Dead and gone,” he said, referring to the project.

In its filing to the BPU, Atlantic Shores cited Trump’s “presidential wind memorandum,” the remand of the EPA permit, and other federal-level actions by the “current administration” as contributing to its decision. The developer stated that these developments had forced its parent company to “materially reduce its personnel, terminate contracts, and cancel planned project investments.”

Atlantic Shores currently holds three lease areas off the New Jersey coast, spanning more than 1,036 square km, including locations near Atlantic City and within the New York Bight. Though the company insists it remains “ready to deliver,” the termination request signals a significant loss of momentum.

While Atlantic Shores has requested that its petition be reviewed at the next BPU meeting scheduled for June 18, industry observers suggest the request is likely to be approved.

The withdrawal comes amidst broader struggles for New Jersey’s offshore wind programme.

Governor Phil Murphy had initially pledged to deliver 3.5 GW of offshore wind by 2030, later raising the target to 7.5 GW by 2035. However, no project has yet begun construction, and the timeline now appears increasingly at risk.

Ørsted, the Danish wind giant, abandoned two major New Jersey offshore projects in late 2023, citing cost pressures and permitting delays. With Atlantic Shores following suit and other projects facing delays – including the 2.4-GW Leading Light Wind project led by Invenergy and energyRE – New Jersey’s ambitious green energy targets remain far from secure.

Leading Light Wind, which won approvals in January 2024, has since requested regulatory delays due to difficulties sourcing turbines. GE Vernova cancelled plans for its 18-MW turbine, forcing the developers to find alternative suppliers – a process they say has proved problematic.

As Atlantic Shores moves into its self-described “reset period,” attention will now turn to whether the company can recover its footing amid an increasingly inhospitable environment for offshore wind in the US.

Veldhoven, for his part, remains optimistic publicly at least. “Atlantic Shores stands ready to deliver high-capacity factor projects that will safeguard American business interests, support energy security and improve quality of life for millions of Garden State residents,” he said.