February 1, 2019 — Over the past year, U.S. Wind got calls “every day” to sell a lease the energy company bought for $1 million in 2015 in its push to build a wind farm off the New Jersey coast.
“Each time we’d say no,” said Salvo Vitale, the company’s chief counsel, but the offers kept rising. Finally, just before the year ended, they hit a level the company couldn’t resist after New Jersey’s new governor, Phil Murphy, helped push through a mandate that 50 percent of the Garden State’s power would come from renewable sources by 2030.
The result: A $215 million sale of the lease to Electricite de France SA and Royal Dutch Shell PLC last month. It’s a deal that may have marked the start of a new era for energy development in the U.S. Northeast as states rev up green-power mandates to fight global warming, and European energy giants seek to leverage their offshore expertise back home in a rich new market.
When New Jersey changed its standards, “the value skyrocketed” for U.S. Wind’s lease, Vitale said by telephone. “The signals on policy made it feel like the stock market. Each time news came out on policy, we’d get a call from a bank.”
New Jersey’s not alone in this effort. Concerns about global warming have gained among Northeast states as U.S. officials, under President Donald Trump, have been dismissive. Meanwhile, the cost of building offshore turbines is shrinking as the equipment gets bigger and more powerful, and the supply chain has worked out early kinks.