July 31, 2023 — New Jersey residents have sued Danish renewable energy developer Orsted and the state over a tax break the company received to build a major offshore wind farm in the Atlantic, claiming the estimated $1 billion subsidy violates the state constitution.
New Jersey groups Defend Brigantine Beach and Protect our Coast NJ filed their lawsuit on Thursday in state court in Trenton. They claimed the law authorizing the tax break, signed earlier this month by Governor Phil Murphy, violates a provision of the state constitution that generally prohibits legislation that specifically favors a single, private entity.
The groups asked the court to invalidate the law, which they said created the tax break “for the singular purpose of protecting Orsted from commercial risk it voluntarily assumed” when it submitted bids to develop the project, known as Ocean Wind.
Orsted said on Friday it does not comment on pending litigation. The New Jersey attorney general’s office did not immediately respond to a request for comment.