New Jersey and Orsted Settle Offshore Wind Dispute for $125 Million
The State of New Jersey and Danish energy company Orsted have reached a $125 million settlement concerning the halted development of the Ocean Wind 1 and Ocean Wind 2 projects. This agreement resolves all claims related to the discontinuation of these offshore wind initiatives.
The settlement follows Orsted’s decision to cease development on the Ocean Wind projects, which were integral to New Jersey’s clean energy strategy. The $125 million will be directed towards investments in wind energy facilities, offshore wind component manufacturing, and other clean energy programs, advancing the state’s ambitious clean energy goals outlined in the Energy Master Plan.
Governor Phil Murphy emphasized the significance of this resolution for New Jersey’s clean energy future. “This settlement allows us to continue making critical investments in our clean energy infrastructure, ensuring that we remain on track to meet our environmental and economic objectives,” he said.
The New Jersey Board of Public Utilities (NJBPU) will manage the allocation of the settlement funds, ensuring they support projects aligned with the state’s clean energy targets. These investments are expected to bolster New Jersey’s efforts to expand its offshore wind industry and transition to a more sustainable energy future.
The settlement also marks the end of disputes between the state and Orsted, allowing both parties to move forward and focus on future opportunities in the renewable energy sector.
