New Jersey and wind farm developer Orsted settle claims for $125M over scrapped offshore projects
Danish wind farm developer Orsted will pay New Jersey $125 million to settle claims over the company’s cancellation of two offshore wind farms last year
ATLANTIC CITY, N.J. — Danish wind farm developer Orsted will pay New Jersey $125 million to settle claims over the company's cancellation of two offshore wind farms last year — a little over a third of what the company once was required to pay.
The state's Board of Public Utilities said Tuesday that New Jersey and Orsted have settled claims against each other stemming from the company's decision last October to scrap two wind farms off the state's southern coast.
The state said the $125 million it will receive will be used to support investments in wind energy facilities, component manufacturing facilities, and other clean energy programs.
Before the projects were abandoned, Orsted put up a $100 million guarantee that it would have one of them, Ocean Wind I, built by the end of 2025. It also had been obligated to pay an additional $200 million toward the development of the offshore wind industry in New Jersey.
A week after scrapping the projects last fall, Orsted said it was trying to get out of the $300 million worth of guarantees because it was no longer pursuing the projects.
Orsted, in a statement to The Associated Press, said it is “pleased” with the settlement, which it said represents the company's total financial obligation to the state.
The agreement, along with other moves announced Tuesday by New Jersey, “underscore New Jersey’s commitment to offshore wind and the industry’s bright future in the Garden State,” it said.
«While we advance clean energy projects throughout the region, we look forward to continuing valuable partnerships with New Jersey
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