For Immediate Release
Media Contact: Jackie.Greger@sierraclub.org
Ørsted Ceases Development of Ocean Wind I and II, Sierra Club Steadfast for the Future of Responsible and Affordable Offshore Wind
NEW JERSEY -- Late last night, Danish company Ørsted announced that it will officially cease the development of Ocean Wind I and II offshore wind projects. Governor Murphy called into question the company’s “credibility and competence.”
Despite delays over the past two months, Ørsted continually stated the project would continue as planned.Unfortunately, this came down to inflation, unstable market conditions, and bad timing. The current challenges around offshore wind project prices are a temporary reflection of power purchase agreements that were signed before the pandemic, when high supply chain costs and interest rates were unforeseen. Since Ørsted received their bid before the 2020 global pandemic, the cost of steel has increased 50% from the start of 2020 to the end of 2021, for example. These cost burdens cannot be put on the New Jersey ratepayer, and we must continue to work toward cost effective solutions to kickstart this new industry and fully take advantage of federal funding available for clean energy projects.
In response, Anjuli Ramos-Busot, Sierra Club New Jersey Chapter Director, issued the following statement:
“The New Jersey Sierra Club will continue to push for solutions and the responsible development of offshore wind in our state, as it is one of our strongest climate solutions, has the potential to generate thousands of clean jobs, and power our communities. Let’s be clear: clean energy advocates are not defeated by this outcome, as it has nothing to do with the local, astroturfing opposition groups in New Jersey or the fossil fuel industry. This setback is financial. New Jersey needs this green industry, and we cannot let this disappointing economic delay deter our collective movement for a better and safer New Jersey for all of us and future generations.
"New Jersey's opportunity to take advantage of this powerful renewable energy source does not stop here. The beginning of an industry will inevitably face hurdles especially in an environment of inflation and supply chain bottlenecks, but New Jersey will move forward. Responsibly-developed offshore wind can be developed -- our neighbors have done it with Vineyard Wind and South Fork. We are eager for the third round of solicitations and see this just as a setback in our timeline, not an end to our goals of cleaner air, family-sustaining jobs, and transitioning away from fossil fuels."
In response, Denise Brush, Chair of the New Jersey Sierra Club Offshore Wind Committee, issued the following statement:
“New Jerseyans want offshore wind. We want clean air, green jobs, and clean energy now if we are to avoid the worst impacts of climate change. This disappointing setback will only push us harder to strengthen our movement for clean energy, but we will not stop.”
###
About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information about our work in New Jersey, visit www.sierraclub.org/new-jersey.