Both Testa and Donohue stressed that the county is not against clean energy pursued in a way that is affordable and sensitive to economic and environmental issues.
State Sen. Michael Testa speaks of clawing back taxpayer funds that went into the project at a press conference, Nov. 1. Photo Credit: Shay Roddy
Donohue said the struggle over offshore wind is not, and has not been, about climate change. Donohue asserted that the wind farms if fully developed and operational would have little or no impact on climate change, a fact that he said he learned from federal government reports.
‘This was about money,’ Donohue said. He argued that Ørsted and federal and state officials have used the “threat of climate change’ in the pursuit of taxpayer dollars.
In Trenton, Gov. Phil Murphy reacted strongly to Ørsted’s decision, calling it ‘outrageous’ and adding that it ‘calls into question the company’s credibility and competence.’ He said that while ‘today is a setback, the future of offshore wind in New Jersey remains strong.’ He continued by saying he is committed to ensuring that New Jersey ‘becomes a global leader in offshore wind.’
Assemblyman Antwan McClellan joined other officials celebrating Ørsted’s decision to withdraw from the two Ocean Wind projects at a press conference, Nov. 1. Photo Credit: Shay Roddy
Murphy’s remarks included an acknowledgement that ‘offshore wind projects awarded prior to 2020’ have suffered from a storm of economic headwinds in terms of interest rates, inflation and supply chain cost increases. What offshore wind developers are now asserting is that the electricity prices offered at lease auctions are too low given changes in industry costs.
Orsted CEO Mads Nipper said in an industry call, ‘I want to be absolutely clear that we are taking away all learnings from this into future project development.’
Ørsted’s decision to withdraw from the ocean wind projects may represent a reset on the cost of implementing offshore wind. If so, the caution that this is not over may be well placed.
For now the focus was on Ørsted’s withdrawal. Donohue said, ‘We are not saying we singlehandedly took down Ørsted’s Ocean Wind I and II.’ He added that if the county had not resisted as strongly as it did and pursued its litigation strategy as aggressively has it has, ‘They may have made a different decision.’
What comes next is unclear. For now, county officials say they remain vigilant and committed. Desiderio pledged that the county ‘will continue to watch what goes on.’
Concerns about future actions may exist, but the news conference ended with smiles and handshakes. ‘It is always a happy day in Cape May County, but today it’s a bit happier,’ Desiderio said.