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Ocean Wind 1

Cancelled wind energy project off New Jersey coast

  • 24 min read
  • 7 chapters

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Ocean Wind 1's development process spanned from 2015-2023. During this period, the project faced challenges, including potential disruptions to navigation, vessel traffic, and impacts on submerged cultural resources. Despite these challenges, the Bureau of Ocean Energy Management (BOEM) approved the project's Construction and Operations Plan (COP) in September 2023, permitting construction to begin. The wind farm was planned to comprise up to 98 Wind Turbine Generators (WTGs) and three offshore substations (OSS) in Lease Area OCS-A 0498. Ocean Wind LLC, a subsidiary of the Danish company Ørsted, was the developer of the project. Public Service Enterprise Group (PSEG) held a 25% equity interest in the project from 2020 to 2023. PSEG sold their 25% equity interest in May 2023.

Ocean Wind 1 was expected to generate 4,851,489 megawatt-hours (MWh) annually, meeting the New Jersey Board of Public Utilities (BPU) requirements for Offshore Renewable Energy Certificates (ORECs). In October 2023, Ørsted announced the cancellation of Ocean Wind 1 due to rising costs, delays, and supply chain constraints. Following the project's cancellation, Ørsted reached a $125 million settlement with the State of New Jersey, and in August 2024, the New Jersey Board of Public Utilities (BPU) vacated the project’s approvals, nullifying its OREC agreement.

Development Timeline

Ocean Wind 1 followed a four-phase development timeline: Early Development & Planning (2011-2018), Environmental Review and Permitting (2019-2023), Record of Decision & Approvals (2020-2023), and Construction & Installation (2023). The project began with BOEM's leasing process in 2011, progressing through environmental assessments and lease divisions. Regulatory milestones included permit applications in 2019, a Draft Environmental Impact Statement (EIS) in 2022, and a Final EIS in 2023, culminating in BOEM's approval of the Construction and Operations Plan (COP) in September 2023. However, in October 2023, Ørsted, the parent company of Ocean Wind LLC, announced it was terminating development of Ocean Wind 1 due to high costs and supply chain constraints. In February 2024, BOEM approved a two-year lease suspension to Ocean Wind LLC for Lease Area OCS-A 0498. During the suspension, Ocean Wind cannot conduct any activities on the lease or comply with the deadlines and schedules agreed in the COP, but Ocean Wind still needs to pay rent.

Notes: BOEM= Bureau of Ocean Energy Management. WEA = Wind Energy Area. FONSI = Finding of No Significant Impact. SAP = Site Assessment Plan. OREC= Offshore Renewable Energy Credit. COP= Construction and Operations Plan. EIS = Environmental Impact Statement. USFWS = U.S. Fish and Wildlife Services. NMFS = National Marine Fisheries Service. BiOp = Biological Opinion. ESA = Endangered Species Act. PSEG= Public Service Enterprise Group. NOAA= National Oceanic Atmospheric Administration. ROD = Record of Decision.

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