By Sarah Fertsch
Staff Writer
Orsted has announced a full buyout of all shares of Ocean WInd 1, the wind farm being built off the coast of South Jersey.
The Danish company released a statement on Jan. 18 announcing its acquisition of the remaining 25 percent ownership stake held by PSEG. Ocean Wind 1, which is expected to power more than 500,000 homes in New Jersey, is the first of three offshore wind farms planned off the Jersey Shore. No dollar amount has been announced for the purchase of the PSEG share.
A press release from Orsted included a statement by PSEG Senior Vice President and CEO Lathrop Craig.
“It has become clear that it is best for the project for PSEG to step aside and allow for a better positioned tax investor to join the project,” Craig said, citing the need to create an optimized tax structure.
“While this was a difficult decision, it was driven by the best interests of the project and New Jersey’s offshore wind goals. PSEG will continue to actively support offshore wind in New Jersey and the region.”
The transaction is expected to close in the first half of 2023, pending all regulatory approvals.
The initial delivery of power from Ocean Wind 1 is scheduled for the end of 2024, and full commissioning is expected in 2025, according to Orsted.
In addition to the wind farms, Orsted is building an operations facility in Atlantic City, and a monopile manufacturing operation in Paulsboro, Gloucester County. The company’s goal is to create a clean-energy industry in South Jersey, working with local institutions, including Stockton University, Rowan University, Rutgers University and Atlantic Cape Community College to train potential employees in marine construction and environmental science.
The announcement comes after a period when eight whales, mostly humpbacks, have beached along the New Jersey and New York coasts. Everyday citizens and government representatives have made claims connecting Orsted’s wind farm development to the marine mammal tragedies.
Shore Local News spoke with Rep. Jeff Van Drew, Republican representing Atlantic and Cape May counties.
“This buyout is just writing on the wall,” said Van Drew. “At the end of the day, this project is a business deal and they (Orsted) are located on the other side of the world.
“They do not have to deal with the negative effects these wind farms cause, while still reaping the financial rewards from our government. There is no personal connection between them and the communities along the shore, and that relationship will not be sustainable,” he said.
Dennis Levinson, the county executive for Atlantic County, said he hopes Orsted will work with the public to prove its commitment to safety and transparency.
“They need to do significant research and show the people that these wind farms will help, and right now. There are a lot of questions and fear,” the Republican said.
Steve Sweeney, former state Senate president who is expected to seek the Democratic nomination for governor in 2025, said the offshore wind developments will benefit South Jersey and the world as a whole.
“Offshore wind will be a boon to New Jersey’s economy, with the New Jersey Board of Public Utilities estimating that Atlantic Shores will create $1.9 billion in economic activity and 3,100 jobs, and Ocean Wind II will generate $1.7 billion for the state’s economy and 3,700 jobs,” he wrote in a NJ Advantage Media an opinion piece titled, “New Jersey’s mushrooming offshore wind industry is a boon for jobs and the climate.”
Ocean City is the latest shore town to call for a halt in wind farm research and development. Mayor Jay Gillian, in partnership with the City Council, has demanded an immediate halt and full investigation into the whale deaths and any role Orsted may have in them.
The seven members along with Gillian met on Jan. 19 and resolved to “call for an immediate suspension of all offshore wind development activity until a comprehensive, thorough investigation is held by federal and state agencies that confidently concludes these activities are not a contributing factor to recent whale deaths.”
Ventnor and Brigantine have also passed resolutions to pause wind development and fully investigate the marine mammal connection, if found. In a city resolution, Ventnor Commissioner Lance Landgraf said:
“We are certainly concerned with anything that is causing the death or injuries of marine and other wildlife. We do not necessarily have an opinion on what is causing the deaths of the whales. We are not experts in that field, but we want those answers to be provided by the appropriate agency or consultants.”
In addition to city governments, locals have expressed their concerns through art and protest. John Gowdy, a sand sculptor from Ventnor, drew a humpback whale in the sand with the word “Why?” written below.
The artist, along with a group of protestors, held up signs reading “Stop the offshore wind project” and “Stop turbine madness.”
The rally took place on Jan. 21 on the beach by the Ventnor Fishing Pier, in collaboration with Protect Our Coast NJ, an environmental group fighting for ocean wellness in opposition to the offshore wind farms.
Jay Samson, a 36-year-old from Somers Point, has taken to social media to share his concerns regarding the Orsted buyout and the potential connection with the whale deaths.
“The offshore wind will destroy our ecosystem and we will have drastic economic hardships because of it,” Samson said.
Samson told Shore Local News he believes that this South Jersey controversy should be a top-of-the ticket issue for the 2024 presidential election.
“People with resources, where are you?,” asked Samson. “When the warm weather comes around, I think more marine mammals are going to be heavily impacted in a joint slaughter.”
Orsted declined to comment on its ecosystem research, wind farm development, and recent acquisition of the PSEG shares of Ocean Wind 1.
Sarah Fertsch was born and raised in Egg Harbor Township, and holds a dual degree in public relations and political science. Prior to joining Shore Local full-time, she worked at a CSPAN affiliate, writing about Pennsylvania legislation. When she isn’t writing, Sarah enjoys painting, horseback riding, and Crossfit.
One Response
It is becoming more and more clear that a lot of politicians coming out in support of wind mills are probably seeing increases in their savings accounts. . The European companies are well versed in paying off politicians to support their programs . In the end the power user will pay for the political donations.. Wind mills are failing in Europe and the producers know most American politicians are stupid snd will support anything that increases their net worth . The bigger problem probably is the dropping IQ’’s of majority of voters that have filled our ruling bodies with criminals
f