Douglas Kennedy reports on the Massachusetts wind farm project that puts fishing jobs at risk. Global energy developer Orsted abruptly canceled two major offshore wind projects off New Jersey’s coast in a blow to President Biden’s green energy goals which call for a rapid development of wind energy. The Denmark-based energy firm said its board of directors voted to ax its high-profile Ocean Wind 1 and Ocean Wind 2 twin projects in response to changing macroeconomic factors, including high inflation, supply chain bottlenecks, and rising interest rates.
The projects had been personally backed by Democratic New Jersey Gov. Phil Murphy and cited by the White House as proof of “Bidenomics” working. “We have no choice but to cease development of Ocean Wind 1 and Ocean Wind 2,” said David Hardy, Orsted’s group executive vice president and Americas division CEO. “We are extremely disappointed to have to take this decision, particularly because New Jersey is poised to be a U.S. and global hub for offshore wind energy.”
Orsted remains committed to the U.S. renewable energy market and believes offshore wind energy is crucial for meeting clean energy ambitions and job creation. However, the cancellation of the Ocean Wind projects raises concerns about the feasibility of Biden’s goal to deploy 30 gigawatts of offshore wind energy by 2030.
The sudden move by Orsted highlights the challenges facing the offshore wind energy sector due to economic headwinds, including inflation and supply chain issues. Other developers have also announced plans to reassess their projects in recent weeks.
Ocean Wind 1, which received formal approval for construction by the Biden administration in July, was hailed as a significant milestone in Biden’s clean energy goals. However, the cancellation of the project questions the viability of such initiatives.
Orsted’s decision has drawn criticism from New Jersey Gov. Phil Murphy, who stated that the company’s credibility and competence are now in question. A coalition of stakeholders led by Cape May County has also filed a lawsuit against the Biden administration, arguing that the approval process for Ocean Wind 1 was rushed and did not adequately consider the negative impacts.
While the cancellation is seen as a setback for the Biden and Murphy administrations, it is considered a victory for local residents, environmentalists, and commercial and recreational fishermen who have raised concerns about the economic sustainability and environmental impact of offshore wind turbines.
The future of offshore wind energy in the United States remains uncertain, with the cancellation of major projects like Ocean Wind 1 and Ocean Wind 2. The Biden administration will need to reassess its clean energy goals and address the challenges faced by the offshore wind industry to achieve its ambitious targets.
Overall, the cancellation of Orsted’s offshore wind projects highlights the complexities and uncertainties surrounding the development of renewable energy in the United States. It serves as a reminder that achieving clean energy goals requires careful consideration of economic, environmental, and social factors.
