US launches review of EDF-Shell's new multi-gigawatt Atlantic Shores North wind

Joint venture owns three leases with over 7GW of potential capacity to meet burgeoning demand from American leaders New Jersey and New York

Liz Klein, director of BOEM.
Liz Klein, director of BOEM.Foto: Department of Interior

US offshore energy regulator Bureau of Ocean Energy Management (BOEM) kickstarted the environmental review of a further almost 2.5GW of potential capacity under development by the Atlantic Shores joint venture (JV) of Shell and EDF.

BOEM issued a notice of intent (NOI) to begin the environmental impact statement (EIS) of Atlantic Shores North array proposed for the lease area adjacent to the JV’s ongoing 1.5GW namesake project to New Jersey.

The new project 8.4 miles (13.5 km) from the New Jersey coast and around 60 miles from New York could see as many as 157 turbines installed on the 81,129-acre (328.3 km2) lease for around 2.35GW of total capacity.

“BOEM is continuing to implement the Biden-Harris administration’s clean energy agenda, while maintaining a careful approach to prevent, reduce, and address any adverse effects on ocean users and the marine ecosystem,” said BOEM director Elizabeth Klein.

“As an integral part of our environmental assessments, we will continue to actively solicit feedback from Tribes; federal, state, and local government partners; the fishing community; and the public to help guide our actions.”

This is the developer’s second construction and operations plan (COP) to be advanced at the federal level.

Three-lease pipeline

The company owns three leases in the New York/New Jersey region with a total capacity exceeding 7GW.

The company’s Atlantic Shores North and South leases were originally acquired as a single area by US Wind in 2015, then split and sold to French utility EDF in 2018 for $215m.

EDF then teamed up with Dutch oil major Shell to form Atlantic Shores, which also won a lease in the New York Bight blockbuster of 2022, walking away with 79,351-acres for $780m.

The Atlantic Shores ongoing project was awarded in New Jersey’s second round in 2021, along with Orsted’s 1.15GW Ocean Wind 2.

Despite the collapse of Orsted's Ocean Wind 1 & 2 on surging costs and tax credit disputes, Atlantic Shores confirmed its project remains under development with its original offtake contract.

Atlantic Shores South with a total project envelope of up to 3GW was issued its draft EIS by BOEM in May 2023. The developer bid the remaining capacity available in the project envelope into New Jersey's round 3 but failed to win a contract.

Demand for capacity in the region will likely remain high as both New Jersey and New York are ramping their offshore wind procurement.

New York leads the nation with 5.8GW of capacity under contract towards its mandate 9GW by 2035 target, including a rapid round 4 that added 1.7GW in February this year.
New Jersey follows with 5.2GW contracted to the Board of Public Utilities (NJBPU) following its massive round 3 for 3.7GW, with sector supporter governor Phil Murphy urging the regulator begin working on the next round for 1.2GW expected next year.

Atlantic Shores North COP includes the potential to deliver to either state, with routes along existing designated export cable corridors (ECC) through federal and state waters to New Jersey’s Monmouth Landfall landing site, the same as its contracted project in the South lease, as well as various sites in Staten Island and Brooklyn, New York City.

The NOI was published in the Federal Register, the nation’s journal of record, 18 March, initiating a 45-day comment period.
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Published 19 March 2024, 23:58Updated 20 March 2024, 05:06
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