EDF Renewables North America and Shell New Energies US LLC announced that the companies have formed a 50/50 joint venture, Atlantic Shores Offshore Wind, LLC to co-develop OCS-0499 lease area within the New Jersey Wind Energy Area (WEA). The lease area holds the potential to produce approximately 2,500 MW of offshore wind energy – enough to power close to one million homes.
EDF Renewables and Shell believe an offshore project could be operational off New Jersey by the mid-2020s, subject to a final investment decision.
This transaction is subject to regulatory approvals. Construction is subject to positive final investment decision.
The lease comprises 183,353 acres about eight miles off the coast of Atlantic City on the U.S. Outer Continental Shelf (OCS). The area offers strong and steady wind resources in relatively shallow water, close to large population centers with associated electricity demand.
“Shell has bold ambitions to grow our renewable power business and we see great potential in U.S. offshore wind,” said Dorine Bosman, VP Shell Wind Development. “Gaining access to this acreage in New Jersey complements our successful entry to Massachusetts and our existing renewable generation business. Building on the strength of our brand and global presence allows us to continue providing our customers with more and cleaner energy.”
Shell first entered the onshore wind business in the U.S. in 2001. Shell has operated offshore assets for decades, has a strong supply-chain network and is one of the largest power wholesalers in North America. These strengths allow Shell to continue to grow its position in renewable power to support the company’s renewable power goals. Today Shell has interests in five operational onshore wind power projects in North America and one operational offshore wind farm in Europe. Shell is also part of a consortium that will build and operate the Borssele 3&4 wind farms in Europe.
“The opportunity supports the EDF Group’s aim to double global renewable capacity to 50 gigawatts by 2030. It solidifies EDF Renewables’ ambitions to leverage its depth of experience in the European offshore wind market in the emerging U.S. market,” commented Tristan Grimbert, President & CEO of EDF Renewables North America. “As the costs of offshore wind are declining, the U.S. offshore wind industry is quickly advancing with strong Federal and State support. The industry is well-positioned to meaningfully contribute to the New York and New Jersey economies through employment and supply chain opportunities.”
EDF Renewables already has 2,800 MW of offshore wind in development or operation in Europe (Belgium, France, Germany and United Kingdom), placing the company in a position to efficiently transform the U.S. offshore wind sector, beginning in New Jersey.
Atlantic Shores Offshore Wind, LLC will begin working to complete a site assessment plan and initiate formal development efforts on the site, and subject to a positive final investment decision, could bring the wind farm into operation by the mid-2020s.
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