NJBPU approves 2.7 GW of new offshore wind capacity

4C Offshore | Tom Russell
By: 30/06/2021 NJBPU
The New Jersey Board of Public Utilities (NJBPU) has announced the winners New Jersey's latest and largest offshore wind solicitation to date. The two projects which will result in a total of 2,658 MW have more than tripled the state’s committed capacity from 1,100 MW to over 3,700 MW.

The winning bids included a 1,509.6 MW submission from Atlantic Shores Offshore Wind, LLC (Atlantic Shores), a 50:50 partnership between Shell New Energies US LLC and EDF Renewables North America. It is located in the southern area of its 183,353 acre lease area, around 10.5 miles from the shore. It is expected to consist of around 111 MHI Vestas 13.6 MW turbines. Installation is to take place across two phases with completion of each phase slated for 2027 and 2028. The project would be entitled to an Offshore Wind Renewable Energy Certificate (OREC) of $86.62/MWh in its first year followed by a levelised net OREC cost of $58.81/MWh.

Atlantic Shores' bid also included commitments to use foundation manufacturing facilities at the Port of Paulsboro and an agreement with MHI Vestas to establish a nacelle assembly facility at the New Jersey Wind Port. It also includes plans for pilot green hydrogen facility. The project is expected to inject $1.869 billion in to New Jersey economy, according to NJBPU.

The second successful project is Ørsted’s 1148 MW Ocean Wind 2 project. It is located 13.8 miles from the coast, adjacent to its
Ocean Wind 1 project, which was named winner of New Jersey's first offshore wind solicitation in 2019. Ocean Wind 2 is expected to deploy GE Renewable Energy's 14 MW and is expected to be built across three phase, coming online in 2028 and 2029.

The first year OREC for Ocean Wind 2 was set at $84.03/MWh and the estimated levelised net OREC cost was $42.30/MWh. The Ocean Wind 1,100 MW project secured a first year OREC price at $98.10/MWh and a levelized OREC price of $116.82/MWh over the 20-year term.  

Its bid also includes commitments to use foundation manufacturing facilities at the Port of Paulsboro and includes a commitment to include funding to support the completion of the foundation facility. Furthermore, Ørsted’s Ocean Wind 2 bid includes commitments to establish a nacelle facility with GE Renewable Energy at the New Jersey Wind Port and to conduct marshalling activities at the Port. Ørsted also plans to implement a truck electrification project at Port Newark intended to reduce emissions. NJBPU stated that this project could inject $1.657 billion dollars into the New Jersey economy.

“Expanding New Jersey’s offshore wind industry is a major component of achieving our goal of 100 percent clean energy by 2050, while providing significant opportunities and economic benefits for our state,” said Governor Phil Murphy. “By leveraging a whole-of-government approach and the strengths of our state, this award ensures that our investment in clean energy is also an investment in our communities, and will generate good-paying, union jobs and bring valuable investments to New Jersey. Today’s award, which is the nation’s largest combined award to date, further solidifies New Jersey as an offshore wind supply chain hub and leader in the offshore wind industry in the United States.”

“We have a once-in-a-generation opportunity to establish New Jersey as the epicenter of a new industry that will provide tens of thousands of jobs and billions of dollars in economic benefits when we need it most,” said Joseph L. Fiordaliso, NJBPU President. “Under Governor Murphy’s leadership, we have made significant progress toward our goal of 7,500 MW of offshore wind by 2035 and will continue fighting for a clean energy future that benefits all New Jersey residents, improves public health, mitigates climate change, and bolsters our economy with sustainable, good-paying jobs."

NJBPU will vote in 2022 to open a third solicitation for offshore wind of at least 1,200 MW. Solicitations are expected open every two years until 2028.


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