Supply chain issue forces offshore wind developer to hit pause on N.J. project

Instead of offshore wind turbines on New Jersey’s horizon, the state is once again seeing challenges in helping the industry prosper here.

The latest comes from one of the two project developers that in January got the go-ahead to install blades on our coast.

Leading Light Wind, from Invenergy and energyRE, said earlier this year that its 2,400-megawatt project — slated to be built about 40 miles from shore — was expected to be in operation in two 1,200 megawatt phases in 2031 and 2032.

It is the largest state-approved project so far, and would be among the furthest away from the coast. However, the timelines set at the start of the year could now be in some doubt.

“In light of industry-wide shifts in market conditions, Leading Light Wind submitted a motion for a stay of order to the New Jersey Board of Public Utilities, requesting additional time to continue ongoing discussions with the BPU and supply chain partners,” Wes Jacobs, Leading Light Wind’s project director and vice president of offshore wind development at Invenergy, told NJ Advance Media in a statement Tuesday.

The company said it needs time to obtain the turbines it needs. Those are the engines required to turn wind into electricity.

A notable hurdle came three weeks after state utility officials advanced Leading Light Wind’s project, when GE (or General Electric) announced it would not manufacture the offshore wind turbine that the LLW project planned to use. Siemens Gamesa Renewable Energy also told the developer in June that it was upping the cost of its own turbines.

Leading Light Wind, which does not currently have a turbine supplier according to BPU documents, is now seeking other options. The “motion to stay” until Dec. 20, 2024, would ostensibly allow the developer to find suitable manufacturers and explore affordable market options.

That request to pause plans can be found here. A BPU spokesman on Tuesday declined to comment citing the pending petition before the board.

Last fall, the world’s largest offshore wind developer, Ørsted, suddenly canceled plans to build wind turbines off the Jersey Shore despite years of planning and a tax break from the state. The company had already confronted backlash based on unproven theories that marine mammals were being harmed by pre-construction work and worries local economies could suffer from wind blades visible from the beach.

New Jersey’s first offshore wind farm is now on track to be helmed by Atlantic Shores, a 50/50 partnership between Shell New Energies US LLC and EDF Renewables North America.

Atlantic Shores’ project would include about 200 wind turbines and those would generate power by 2028, company officials have previously said. Although the Interior Department said the Atlantic Shores project would be roughly 8.7 miles from shore, the company has previously noted the closest turbines would be at least 12.8 miles away.

Atlantic Shores faced additional opposition earlier this year regarding a vote to bring transmission lines onshore — as part of what the project needs to run. Atlantic City ultimately permitted those plans to move forward, a city spokesman confirmed.

The other wind project given an initial green light by the BPU in January was proposed by Attentive Energy, a subsidiary of TotalEnergies.

That development, which appears to be moving along as planned, is a 1,342 megawatt project located approximately 47 miles from shore and expected to be operational in 2031.

The state has also opened the door for more companies to bid for projects here.

Energy developers and state BPU officials have acknowledged the headwinds for offshore wind planners in the Garden State and beyond. Specifically, the state, noted at the start of the year how they will be mindful of the projects’ economic feasibility, costs to ratepayers and impacts on the environment and ocean species.

On the impact to customers, the state in a fact sheet said: “The average ratepayer impact of the (projects) for residential customers will be $6.84/month, for commercial customers will be $58.73/month, and for industrial customers will be $513.22/month.”

Moreover, as part of the recent offshore wind approvals, the two new wind developers agreed to provide $164 million for the Paulsboro monopile port.

Attentive Energy and Leading Light Wind — which need additional state and federal permits to build their projects — also vowed to obtain their monopiles from Paulsboro and use a Salem County port, as well.

Jacobs, with Leading Light Wind, said Tuesday the company remained committed to its goals in New Jersey.

“During this requested procedural pause,” Jacobs said, “Leading Light Wind will continue advancing key project development activities including its ongoing survey program and preparation of its construction and operations plan.”

Those developments will be key for New Jersey’s ambitions to reach 11,000 megawatts of usage by 2040.

More broadly, the state wants to reach 100% clean energy by 2035 to tackle climate change through wind, “green” electricity and solar.

Find additional information on New Jersey’s offshore wind proposals here.

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