CAPE MAY COUNTY, NJ. – Cape May County has successfully concluded state and federal litigation concerning the now-defunct Ocean Wind One offshore wind project by Danish energy company Orsted.
In October 2023, Orsted announced its decision to abandon the Ocean Wind One project off the coast of Cape May County. Nearly a year later, the company reached an agreement with the State of New Jersey to return $175 million of the $300 million held in escrow with the New Jersey Board of Public Utilities (NJBPU). As part of the agreement, the NJBPU vacated Orsted’s approvals for both Ocean Wind One and Ocean Wind Two in August 2024, rendering them no longer eligible as Qualified Offshore Wind Projects.
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Cape May County had filed a federal lawsuit against the Bureau of Ocean Energy Management (BOEM) and other agencies, joined by local organizations including Clean Ocean Action, Garden State Seafood, and the Greater Wildwood Hotel and Motel Association. The Department of Justice admitted in court filings that the cancellation of NJBPU easements and permits precluded the projects’ construction.
Orsted supported motions to dismiss the lawsuits, effectively conceding that the projects would not proceed. The Bureau of Ocean Energy Management has since suspended the Ocean Wind One lease area for three years, with no immediate plans by offshore wind developers to utilize the space. Orsted has also indicated its intention to abandon the Skipjack project off the coast of Delaware, which would have been visible from Cape May County.
Cape May County Commission Director Len Desiderio praised the collective effort that led to the projects’ defeat. “Thanks to the efforts of Cape May County, our litigation partners, courageous officials, and dedicated activists, the threat posed by the Orsted projects to our people, businesses, and marine life has been stopped,” Desiderio said. He highlighted potential losses of over $1 billion in tourism revenue and significant threats to fisheries and marine ecosystems had the projects moved forward.
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Former New Jersey Superior Court Judge Michael J. Donohue, serving as the county’s Special Counsel for Offshore Wind, called the outcome a testament to the county’s strategic opposition. “The admissions by Orsted, the Department of Justice, and the New Jersey Attorney General made it clear: the Ocean Wind One project is dead,” Donohue stated. He attributed the success to grassroots activism and the county’s leadership, noting Orsted’s acknowledgment of significant risks posed by local opposition and economic challenges.
With Orsted’s projects halted and the lease area suspended, Cape May County officials expressed relief and optimism for the future. “This victory ensures the protection of our economy, environment, and marine life,” Desiderio added. The resolution marks a significant milestone in the ongoing debate over offshore wind projects and their impacts on coastal communities.
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