In the first serious fallout from President Donald Trump’s early actions against offshore wind power, oil and gas giant Shell is walking away from a major project off New Jersey.
Shell told The Associated Press it is writing off the project, citing increased competition, delays and a changing market.
“Naturally we also take regulatory context into consideration,” spokesperson Natalie Gunnell says in an email.
Shell co-owns the large Atlantic Shores project, which has obtained most of its permits and would generate enough power for 1 million homes if both of two phases were completed. That’s enough to supply one-third of New Jersey households.
It’s unclear whether Shell’s decision kills the project—partner EDF-RE Offshore Development says it remains committed to Atlantic Shores.
On his first day in office, Trump signed an executive order singling out offshore wind for contempt with a temporary halt on all lease sales in federal waters and a pause on approvals, permits and loans. The order also directs administration officials to review existing offshore wind energy leases and identify any legal reasons to terminate them.