'Outrageous': Murphy Slams Offshore Wind Abandonment In NJ

CAPE MAY COUNTY, NJ — Officials throughout New Jersey are reacting to the news that Danish developer Orsted is abandoning two of its offshore wind projects - while some are mourning, others are celebrating.

The announcement came late Tuesday night that Ocean Wind 1 and Ocean Wind 2 would not be moving forward due to economic issues including supply chain problems, Orsted said in a statement. Read more: 2 Offshore Wind Farms Canceled In New Jersey, Developer Says

"Today's decision by Orsted to abandon its commitments to New Jersey is outrageous and calls into question the company's credibility and competence," Gov. Phil Murphy said Tuesday night. A few months ago, Murphy signed into law a bill that gave Orsted $1 billion in tax credits to keep the projects going.

That bill included protections that meant New Jersey would receive $300 million to support offshore wind should Orsted's projects fail to proceed, Murphy said.

"I have directed my Administration to review all legal rights and remedies and to take all necessary steps to ensure that Orsted fully and immediately honors its obligations," Murphy said.

While Murphy slammed Orsted's decision, officials in Cape May County were celebrating.

"This is a great day for the people and businesses of Cape May County," said County Commission Director Len Desiderio. He added that the fight was not over.

"Orsted has walked away from Ocean Wind One, but we are not walking away from this fight," Desiderio said. "We intend to redouble our efforts to ensure that our horizon remains free of massive offshore industrialization."

County officials attributed the project abandonment to their own efforts.

"There is no doubt that our efforts played a significant roll in Orsted's decision to abandon Ocean Wind One and Ocean Wind Two," said Michael J. Donohue, a former Superior Court judge and current special counsel to the county on offshore wind.

Other environmentalists said they were disappointed in the decision, but were not giving up on offshore wind in New Jersey.

"Every new industry has its setbacks," said Ed Potosnak, executive director of New Jersey League of Conservation Voters. "However, this decision should not distract from our efforts to move toward a clean energy future in New Jersey using offshore wind as a tool to protect our oceans and mitigate climate change."

"The beginning of an industry will inevitably face hurdles especially in an environment of inflation and supply chain bottlenecks, but New Jersey will move forward," said Anjuli Ramos-Busot, New Jersey Director for the Sierra Club.

Former New Jersey Sierra Club director Jeff Tittel slammed Orsted for "mishandling" the projects.

"They didn't listen to the public and did not understand our needs or politics. They thought that the would get a blank check, their arrogance is why these projects failed," Tittel said.

Murphy noted that the cancellation was a "setback" but said "the future of offshore wind in New Jersey remains strong."

"I remain committed to ensuring that New Jersey becomes a global leader in offshore wind – which is critical to our economic, environmental, and clean energy future," Murphy said.