New Jersey governor to sign tax break for Orsted’s offshore wind farm
Jul 6, 2023, 8:19 AM
A giant monopile, the foundation for an offshore wind turbine, sits on rollers at the Paulsboro Marine Terminal in Paulsboro, N.J. on Thursday, July 6, 2023, when New Jersey Gov. Phil Murphy planned to sign a bill granting a tax break to offshore wind developer Orsted. (AP Photo/Wayne Parry)
Credit: ASSOCIATED PRESS
(AP Photo/Wayne Parry)
PAULSBORO, N.J. (AP) — New Jersey Gov. Phil Murphy was expected to sign a bill Thursday giving a tax break to Danish offshore wind developer Orsted for the first of two energy projects it plans to place in the waters off the Jersey Shore.
Before the ink is dry on that bill, he will face pressure from another offshore wind company looking for similar assistance.
The governor’s office said he would sign the bill, allowing Orsted to keep federal tax credits that it otherwise would have been required to pass along to New Jersey utility ratepayers.
Lawmakers who narrowly approved the bill last week said the aid is necessary to help Orsted deal with inflation and the lingering effects of the COVID-19 pandemic.
Neither the company nor Democratic lawmakers listed the value of the tax break, but a Republican state senator, Edward Durr, put it at nearly $1 billion.
Atlantic Shores said earlier this week it too wants government assistance to build its own wind farm off the southern New Jersey coast, warning that the project is “at risk” without additional financial assistance from the government.
Atlantic Shores is a joint partnership between Shell New Energies US LLC and EDF-RE Offshore Development LLC.
The bill signing comes a day after Orsted’s Ocean Wind I project received clearance from the U.S. Bureau of Ocean Energy Management to begin construction on a wind farm 13 to 15 miles off the coast of Atlantic City and Ocean City. Additional approvals are still required at the federal and state levels, but Orsted said it expects to have them in hand by the second quarter of 2024.
It plans to begin construction on the wind farm, with nearly 100 wind turbines, this fall. It aims to provide enough electricity to power 500,000 homes.
Orsted also has approval to build a second wind farm off New Jersey’s coast, but that project is not as far along in the regulatory process.
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