Shell announced its withdrawal from the Atlantic Shores offshore wind project off New Jersey’s coast, marking the first major industry response to President Trump’s recent executive order targeting offshore wind development.

The energy giant cited increased competition, delays and changing market conditions in its decision to write off the nearly $1 billion investment.

The Atlantic Shores project, designed to power approximately 1 million homes across two phases, now faces an uncertain future despite partner EDF-RE Offshore Development’s stated commitment to continue. The project had secured most necessary permits and received Biden administration approval in October, but construction had not yet begun.

Trump’s day 1 executive order implemented a temporary halt on offshore wind lease sales in federal waters and suspended approvals, permits, and loans. Crucially, it also mandated a review of existing leases for potential termination, creating significant uncertainty for developers and investors.

The setback follows Orsted’s October 2023 cancellation of two New Jersey offshore wind projects due to economic concerns. Industry experts note that offshore wind remains among the more expensive clean energy options, requiring strong policy support to attract investment despite its crucial role in addressing climate change and meeting clean energy goals, such as New Jersey’s target of 100% clean energy by 2035.

Local opposition groups celebrated Shell’s withdrawal, with Protect Our Coast N.J. suggesting the project may be “dead in the water” without Shell’s financial backing. Republican Rep. Jeff Van Drew, who helped draft Trump’s executive order, called it a “big win” for New Jersey’s coastline and economy.

Read more: In win for Trump, oil giant Shell walks away from major New Jersey offshore wind farm

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