ATLANTIC CITY, N.J. — An offshore wind initiative in New Jersey is now requesting a second postponement, citing ongoing difficulties in securing a manufacturer for vital turbine equipment amidst ongoing challenges in the industry.
Leading Light Wind had previously been granted an extension by the New Jersey Board of Public Utilities due to the struggles associated with finding a producer for the turbine blades necessary for energy generation. However, that initial pause has since expired as of December 20. Before the expiration, Leading Light submitted a request for further deferment, seeking an extension until May 20.
While the company did not mention the challenges related to sourcing a blade manufacturer as the cause for the renewed delay, their latest appeal highlighted that “the offshore wind equipment market continues to experience significant price volatility and the company has not yet identified a solution to that volatility.” On inquiries regarding whether the inability to secure a blade manufacturer was a core issue in the request, Leading Light did not provide a response.
Project director Wes Jacobs commented, “This additional time will allow us to continue to navigate ongoing market shifts and supply chain challenges, as we work to advance the development of this important project for New Jersey.” The board, however, did not provide an estimate for when it might review the latest request.
The initiative, a collaboration between Chicago-based Invenergy and New York’s energyRE, is set to be located 40 miles offshore from Long Beach Island and aims to install up to 100 turbines, which would be sufficient to provide energy for approximately 1 million residences.
Approved by the state utilities board in January 2024, Leading Light was one of two wind projects selected. However, shortly after receiving that affirmation, one of the three major turbine manufacturers, GE Vernova, announced it would not produce the type of turbines that Invenergy had intended to utilize for this endeavor. Additionally, a turbine from Vestas was also found unsuitable for the project, and the remaining supplier, Siemens Gamesa Renewable Energy, informed Invenergy in June of a price increase regarding their turbines.
Invenergy has committed substantial financial resources to the project, which includes a requirement to contribute $105 million towards constructing a facility for monopile production in Paulsboro.
Critics of offshore wind have pointed to the latest delay as evidence that the industry is not economically viable, particularly given the imminent return of Donald Trump, a known opponent of offshore wind initiatives, to the White House. The group Protect Our Coast NJ issued a statement asserting that, “We can only draw one logical conclusion: the Trump administration threatens the lifeblood of the offshore wind industry, namely, large government subsidies and less regulation.”
Currently, there are two other offshore wind projects that have received preliminary approval in New Jersey. The Attentive Energy Two project, a collaboration between Paris-based TotalEnergies and London’s Corio Generation, aims to be constructed 42 miles offshore from Seaside Heights and is designed to power over 650,000 homes, without impacting the coastal view.
Another initiative, called Atlantic Shores, a joint effort from Shell New Energies US LLC and EDF-RE Offshore Development LLC, intends to generate sufficient energy for around 700,000 homes and is planned to be located about 8.7 miles from the shore at the nearest point, with previous communication stating that the closest turbines will be at least 12.8 miles away.
While some experts express concerns regarding the viability of the offshore wind industry, particularly with new political leadership, Paulina O’Connor, the executive director of the New Jersey Offshore Wind Alliance, contends that the future prospects for offshore wind are bright. “There is no shortage of challenges to advancing a new industry through market-wide shifts, but the fundamentals of offshore wind in New Jersey remain strong,” she remarked.