The Atlantic Shores offshore wind power developers filed a request to cancel their renewable energy agreement with New Jersey utility officials, citing the Trump administration’s roadblocks to wind energy amid already escalated cost challenges

The planned 2.8 gigawatt array of 197 turbines, a joint venture by Shell New Energies and EDF Renewables North America, was to be built off Long Beach Island and Brigantine, N.J. In early February Shell withdrew as an equity partner, disclosing a $996 million impairment associated with Atlantic Shores.

The project was a longtime target of opposition groups, including seaside beach communities and commercial fishermen, and faced a new hurdle in March when the Trump administration withdrew an air quality permit for construction.

In a June 4 request Atlantic Shores petitioned the state Board of Public Utilities to withdraw its earlier Offshore Renewable Energy Certificates (OREC) order that cleared the way for development. Atlantic Shores had been a major piece toward Gov. Phil Muphy’s 2018 administration goal for developing 3.5 GW of wind power through the late 2020s.

“Due to the uncertainty caused by the Presidential Wind Memorandum, the subsequent loss of the Air Permit, and other actions taken by the current administration more generally…(Atlantic Shore’s) parent company has been forced to materially reduce its personnel, terminate contracts, and cancel planned project investments,” according to the developers’ petition.

After Shell’s withdrawal in February, Atlantic Shores remaining backers said it “intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits.”

Despite the developers OREC cancellation, Atlantic Shores CEO Joris Veldhoven struck a similar note, hinting that some future revival could happen.

“Offshore wind continues to offer New Jersey a strong value proposition that includes thousands of good-paying jobs, stable power prices, and real economic benefits,” Veldhoven said in a statement. “While no ratepayer money or subsidy was spent on Atlantic Shores Project 1, this reset period presents us an opportunity to ensure utility customers continue to get a fair deal for critical infrastructure delivery. And with record demand for electricity outpacing supply, one thing’s for sure: New Jersey needs more power generation.”

Critics of the Murphy administration’s energy policy have blamed its emphasis on renewable sources for triggering rising costs for New Jersey rate payers. Now renewable advocates and environmental activists are trying to turn that argument around.

Ed Potosnak, executive director of the New Jersey League of Conservation Voters, alluded to the deal New York state officials struck with the Trump administration to restart the Empire Wind projectCV, regarding Atlantic Shores filing to vacate its Offshore Wind Renewable Certificate (OREC).

“Now to add insult to injury another state will likely get those benefits,” said Potosnak. “At a time when New Jersey families are concerned about energy affordability and rising utility prices, we need to be building clean energy to lower costs, create good jobs in the state, lessen our dependence on dirty and expensive oil and gas, and protect our communities from the dangers of climate change. In New Jersey we lead, and we’re not giving up on offshore wind due to a temporary setback.”