July 6, 2023 — Ørsted’s 1,100-megawatt Ocean Wind 1 project off New Jersey won approval from the Bureau of Ocean Energy Management Wednesday, days after state legislators racing a budget clock approved channeling additional tax credits to the developer.
BOEM’s sign-off on the Ocean Wind 1 construction and operations plan marks the third approval of a commercial-scale, offshore wind energy project in the United States, following on the Vineyard Wind project off southern Massachusetts and the South Fork Wind project, south of Rhode Island and east of Montauk on the east end of New York’s Long Island.
Ørsted’s New Jersey project will be a first for that state and is a centerpiece for Democratic Gov. Phil Murphy’s administration plans for expanding renewable energy sources. Republican state lawmakers have been increasingly opposed amid stiff resistance from their constituents in coastal communities and critics’ warnings that offshore wind will increase consumers’ power costs.
The federal approval came days after the New Jersey state Legislature, under the gun to complete state budget votes by day’s end on June 30, approved bills that will allow Ørsted to use federal tax credits to bolster financing for the project.