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In a turn of events, Danish energy company Ørsted has announced the cancellation of two offshore wind power projects, drawing sharp criticism from New Jersey Governor Phil Murphy. The move comes as a setback to the clean energy agenda championed by both President Biden and Governor Murphy.
Ørsted officials have attributed the cancellation to inflation and supply chain issues. The move has sparked outrage from Governor Murphy, who has openly questioned Ørsted’s credibility and competence in light of this decision. “This decision is outrageous,” said Murphy, adding that it raises serious doubts about the company’s ability to deliver on its commitments.
The cancellation of these projects is particularly noteworthy given that Ørsted had previously secured a billion dollars in tax credits from the state for their development. These projects were seen as a crucial step towards achieving Governor Murphy’s goal of transitioning New Jersey to 100 percent clean energy by 2035.
The timing of this announcement, less than a week before Election Day, adds another layer of complexity to the situation. With all 120 seats in the Democratic-controlled legislature up for grabs, the impact of this decision on the election remains to be seen. As voters prepare to head to the polls, the future of clean energy in New Jersey hangs in the balance.
The planned Ocean Wind 2 project was expected to have a capacity of 1,148 megawatts, which was enough to power some 500,000 homes.