Ocean Wind 1 Delayed Until 2026, Developers Say

OCEAN CITY, NJ — New Jersey's first offshore wind farm will be delayed until 2026, developer Orsted announced this week.

Ocean Wind 1, originally planned to begin operation in 2025, is being delayed due to supply chain issues, higher interest rates and a failure so far to garner enough tax credits from the federal government, according to the Associated Press.

The news was shared during an earnings conference call where Orsted said it could be forced to write off about $2.3 billion on U.S. projects that are worth less than they had been, and that it considered abandoning Ocean Wind 1 entirely.

But the company still believes the project will be profitable.

Preconstruction work in Ocean City is still set to begin in September. Read more: Offshore Wind Cable Work To Begin Soon In Ocean City

The announcement of a delay comes at a time where support for offshore wind is plunging, according to a recent poll by Monmouth University. Just over 40 percent of New Jersey residents oppose offshore wind, up from 15 percent in 2019, according to the poll.

The decline has been largely partisan, according to Monmouth University.

“There was a time when wind energy was not really a political issue. It consistently received widespread bipartisan support for more than a decade. That is no longer the case,” said Patrick Murray, director of the independent Monmouth University Polling Institute.

In spite of the announced delay, anti-wind groups like Protect Our Coast NJ are determined to keep fighting.

“We will continue our fight in state and federal courts. If anything, Orsted's announcement will only intensify our activities, for it shows the positive outcomes that can result when thousands of hard working, committed citizens get together to fight for our oceans, our shores, our livelihoods and our environment," said Protect Our Coast NJ board member and spokesperson Robin Shaffer.

Orsted said it has already invested $4 billion in its U.S. wind energy portfolio, which factored into its decision, at least for now, to stick with its proposed projects, the Associate Press reported. The company plans to make a “final investment decision” on whether or not to go forward with U.S. projects, including one in New Jersey, by the end of this year or early next year.