Atlantic Shores, a joint venture between Shell and France’s EDF, has reaffirmed its commitment to delivering New Jersey’s first offshore wind project despite Shell’s recent $1bn write-off related to the venture.
The write-off was part of $2.2bn in impairments reported in Shell’s fourth-quarter earnings, as reported by Reuters.
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Shell’s chief financial officer, Sinead Gorman, noted that the project did not align with the company’s capabilities or return goals.
Despite Shell’s decision to monetise its stake in the venture, Atlantic Shores remains focused on progressing with the project.
The company emphasised its compliance with obligations to local, state and federal partners under existing leases and permits.
Atlantic Shores said in a statement: “Business plans, projects, portfolio projections, and scopes evolve over time – and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential.”
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By GlobalData“While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits.”
The Atlantic Shores South wind project will generate up to 2.8GW of electricity, enough to power close to one million homes, according to the US Interior Department, which approved the project in July 2024.
Located 8.7 miles (14km) offshore New Jersey, it will feature two wind energy facilities and associated export cables.
The US offshore wind sector faces economic challenges, including soaring materials costs, high interest rates and supply-chain delays.
Developers Ørsted, Equinor, BP, Avangrid and Shell have either cancelled or attempted to renegotiate power agreements for upcoming US wind farms, with anticipated launch dates ranging from 2025 to 2028.
