The Board of Public Utilities highlighted uncertainty regarding federal support for the offshore wind industry as a key factor. Credit: Make more Aerials/Shutterstock.

The US state of New Jersey has announced that it will not award new offshore wind contracts, in an indication of the impact of US President Donald Trump’s order to review the federal offshore wind programme.

The decision, made by the New Jersey Board of Public Utilities (BPU), follows Shell‘s withdrawal from the Atlantic Shores project, as reported by Reuters.

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The project’s lease area is between 16.1km and 32.3km offshore New Jersey between Atlantic City and Barnegat Light.

It was the only project that had finalised a bid under New Jersey’s latest offshore wind procurement programme.

Shell New Energies US and EDF Renewables North America formed a 50:50 joint venture called Atlantic Shores Offshore Wind, LLC for its development.

The Board of Public Utilities (BPU) highlighted uncertainty regarding federal support for the offshore wind industry as a key factor.

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Its president, Christine Guhl-Sadovy, stated: “The board concluded that an award in New Jersey’s fourth offshore wind solicitation, despite the manifold benefits the industry offers to the state, would not be a responsible decision at this time.”

This development is part of a series of challenges facing the US offshore wind sector, which is already grappling with rising costs and cancelled projects.

Trump’s suspension of new federal offshore wind leasing, pending an environmental and economic review, has added complications.

New Jersey is a leading state in offshore wind initiatives, with Governor Phil Murphy aiming to install 11GW by 2040 to advance clean energy.

In its fourth solicitation, New Jersey sought up to 4GW of offshore wind capacity.

According to the BPU, two of three bidders had withdrawn from the process, now leaving only Atlantic Shores.

Federal approval for the Atlantic Shores project was received under the Biden administration in 2024 and, if completed, could generate enough electricity to power one million homes.

EDF Renewables has expressed concern over the impact of Trump’s order.

EDF Renewables spokesperson Sandi Briner stated: “The anti-wind executive order has created extraordinary uncertainty that is directly and immediately detrimental to US jobs, energy production and investment.”