New Jersey Exploring Alternative Uses for Its Offshore Wind Port

The New Jersey Economic Development Authority (NJEDA), which has developed the New Jersey Wind Port on behalf of the New Jersey State, is assessing options and alternatives for the hub-style port for offshore wind as the market is facing challenges.

The offshore wind port is located in Lower Alloways Creek, Salem County, and is being developed in phases. Construction started in the autumn of 2021 with Parcel A, a 30-acre parcel purpose-built for marshaling activities, completed in May 2024.

NJEDA issued a notice to lease in 2021, attracting 16 offers from offshore wind developers and Tier 1 manufacturers.

In 2022, Ørsted signed a Letter of Intent (LoI) with NJEDA to use the New Jersey Wind Port and the two parties inked agreements for the development and sublease of up to 34 acres in July 2023.

Atlantic Shores Offshore Wind, a joint venture between Shell and EDF Renewables, signed an LoI to lease 35 acres of land at the new port for marshalling at the beginning of 2023.

Ørsted’s agreements were related to the 1.1 GW Ocean Wind 1 offshore wind project, a shovel-ready project whose development the company cancelled in late 2023.

The joint venture between Shell and EDF Renewables planned to use the New Jersey Wind Port for its 1.5 GW Atlantic Shores offshore wind project, which received federal approval in October 2024 and was in the running for a state contract.

However, the New Jersey Board of Public Utilities (NJBPU) cancelled the fourth offshore wind solicitation at the beginning of this month, citing uncertainty caused by recent federal actions and Shell’s withdrawal from the Atlantic Shores offshore wind project, as well as the fact that the other two bids received had been withdrawn, leaving Atlantic Shores as the only bidder.

Cancelled and paused offshore wind projects and the recent federal order on wind energy issued by the US President Donald Trump have also led NJEDA to look for other options for the New Jersey Wind Port.

“In light of the significant uncertainties in the offshore wind market, we have decided to accelerate our strategic review of options and alternatives for the New Jersey Wind Port”, NJEDA CEO Tim Sullivan said in a statement issued on 3 February.

“While recent developments at the federal level and announcements from offshore wind developers are deeply disappointing, they were not unexpected.”

According to Sullivan, NJEDA has “taken a cautious approach to further development of the port since 2023” and has worked to identify alternative uses that would maximise the economic development, job creation, and financial potential of the site.

“We remain believers in the long-term potential of offshore wind for New Jersey, but our role as stewards of taxpayer resources requires us to evaluate all of our options”, said Tim Sullivan.