After Gov. Phil Murphy and Democratic lawmakers invested tremendous political capital in approving a controversial offshore wind farm, there is concern that the company chosen to develop the project, Ørsted, is on the verge of pulling out of the deal, several sources have told the New Jersey Globe.
The anticipated decision to drop their New Jersey project comes just one week before the state’s midterm elections.
Offshore wind – and unproven allegations that offshore wind is responsible for the deaths of whales and other mammals – has become an issue in several legislative contests.
Citing high interest rates, supply chain delays, and other financial challenges, Reuters reported today that the Danish energy company is preparing to scale back its North American offshore wind deals.
That left some Murphy administration officials concerned that Ørsted might have misrepresented their financial position.
A spokesperson for Ørsted did not immediately respond to an email seeking comment.
The legislature pushed through a $1 billion subsidy to Ørsted to build nearly 100 wind turbines off New Jersey’s south Atlantic coast if the project was completed.
Ørsted recently put $100 million in escrow to guarantee that the first offshore wind farm would be operational by December 2025.
The legislation, which faces a legal challenge, includes a $300 million clawback for New Jersey.
Ørsted will announce its third-quarter earnings tomorrow.
State Sen. Michael Testa (R-Vineland), a staunch opponent of the Ørsted project, said that if the reports are true, “9.3 million New Jerseyans deserve a complete and total audit” to determine how much the state has already invested in the deal.
“Ratepayers forced through legislation to subsidize $1 billion deserve the money back,” he said. “Ørsted is New Jersey’s Solyndra.”
This story was updated at 5:59 PM with comment from Testa.
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