Saul Ewing law firm, representing the developers of the 2.4GW Leading Light Wind project, has told the New Jersey Board of Public Utilities (NJBPU) that its clients will not be going ahead with the project.
The law firm stated that the developers, Invenergy and energyRE, have determined that they cannot move forward with the project under the terms and conditions agreed with the NJBPU.
They did state, however, that they might participate in future OREC solicitations authorised by the Board.
The two developers also quoted the economic and regulatory conditions in the US that have made the development of new offshore wind energy projects extremely difficult.
"Like many other industry participants, the company has faced a series of obstacles in the development of the Leading Light Wind project, including supply chain, equipment, and vendor challenges, as well as changing regulatory requirements, to name but a few of the issues the company has confronted," a letter from the law firm to the NJBPU stated.
As these conditions worsened, the company suspended all obligations for the development of the project several times. However, the most recent motion to extend the stay was not answered by the NJBPU and has been in limbo since mid-May.
As a result, Invenergy and energyRE withdrew their pending motion to extend the stay, and regret to inform the board that they do "not see a path forward for the Leading Light Wind project on this OREC award and look to the future for possible solicitations".
The developers have invested considerable time and financial resources in the development of the project, and remain firmly of the view that the "Leading Light Wind project and offshore wind energy development can provide significant benefits to New Jersey and its residents".
The current Trump administration has shifted energy priorities away from offshore wind and is actively looking to bury the sector with regulatory reversals, project cancellations, reduced federal funding, and stop-work orders.
According to an EIC's report, the development pipeline has fallen considerably, from a planned 56GW to 25.4GW as projects stalled or were halted during this period. The number of projects also dropped from 45 to 23.