Given Ørsted’s late-October decision to scuttle its Ocean Wind 1 and 2 offshore wind projects (2,248 MW) along the New Jersey coast, citing business conditions and permitting uncertainty, it is important to look at other wind development projects. The Bureau of Ocean Energy Management (BOEM) continues to accept applications for wind farms, and we understand that they received four new proposals in August.
In November, the federal government approved the 2,076 MW Empire Wind 1 and 2 wind farm projects, which would have 147 wind turbines combined.
Atlantic Shores Offshore Wind has affirmed that they continue to move forward with plans for 1,510 MW near Atlantic City. Their wind farm would cover almost a 500-square-mile area. As part of this, Atlantic Shores would sell renewable energy credits, based on clean energy generated by the wind turbines, to New Jersey industry.
The Atlantic Shores offshore wind project involves varying numbers of turbines to be installed in each phase of construction, but a maximum of 200 is planned. The project at its closest point would be 8.7 miles from the NJ Shore.
The first phase (105-136 wind turbines) has a final investment decision target of 2024, which Atlantic Shores has stated could be delivering power by 2028.
Atlantic Shores is somewhat different from Ørsted. They are a fossil fuel-based outfit and are a 50-50 joint venture partnership between Shell New Energies US and EDF-RE Offshore Development, (a subsidiary of EDF Renewables North America).
Ørsted, by contrast, was once a coal-based energy company, and began what it says has been a complete transformation to clean energy 10 years ago.
As part of its NJ offshore wind project, Atlantic Shores has entered into an agreement with South Jersey Industries (SJI) for a pilot plant to produce 10 MW of green hydrogen, produced by electrolysis (separating hydrogen from water) using excess wind turbine power. SJI would commercialize that hydrogen by combining it with natural gas (blending) and using its gas infrastructure for delivery.
This partnership was announced on December 15, 2020, and was billed as a way to lower carbon intensity. Atlantic Shores has yet to install a wind turbine, so this project has a long way to go and raises both hopes and concerns for the Sierra Club.
Green hydrogen is not green unless it is created entirely from renewable energy via electrolysis. It cannot be created from natural gas (blue hydrogen), and the process also cannot be fueled by natural gas.
SJI may reduce carbon content by injecting green hydrogen into its delivery systems, but the natural gas component is still a concern. Research suggests that no more than 20% of a hydrogen-natural gas blend can be hydrogen. It is not sound environmental practice to use green hydrogen as an excuse to perpetuate or increase the use of fossil fuels.
Second, SJI is also rapidly expanding into the use of dairy farm manure to produce natural gas, another dubious practice often billed as “green” that is fraught with environmental dangers.
Atlantic Shores is also leasing 35 acres at the New Jersey Wind Port in Lower Alloways Creek, off the Delaware, Salem County, where turbine components will be assembled prior to installation offshore. This will include the nacelle, which is the main housing of the generator, gearbox and other components needed to convert wind energy into electricity. Ørsted had an agreement to be the port’s first tenant, and Atlantic Shores now has the opportunity to take over that position.