Shell has decided to pause its involvement in the Atlantic Shores offshore wind project in the US, which received federal approval in October 2024, the company’s CFO said during a press call after Shell posted its Q4 2024 financial results on 30 January.
In its report for the fourth quarter, Shell included impairment charges of USD 996 million (around EUR 955 million) which the company noted were mainly related to renewable generation assets in North America. During the call, the company’s CFO Sinead Gorman said Shell decided to write off the investment and pause its involvement as the project no longer fit its capabilities or the returns the company expected. According to Reuters , Shell is planning to monetise its stake.
In a statement to offshoreWIND.biz , Shell’s spokesperson said: “We have a sharp focus on performance, discipline and simplification. When it comes to investment in wind, whether in the US or elsewhere, we will focus on value maximisation in key markets where we have an advantaged position, and the macro context is naturally a key consideration. We have no plans to lead new offshore wind developments, but we remain interested in offtakes to meet customer demand where commercial terms are acceptable and are open to considering potential equity investments on their merits.”
Shell owns half of the Atlantic Shores offshore wind development through a 50:50 joint venture with EDF Renewables, Atlantic Shores Offshore Wind, LLC.
After the news about Shell withdrawing from the project, Atlantic Shores issued a statement saying it was committed to New Jersey and delivering the state’s first offshore wind project.
“Business plans, projects, portfolio projections and scopes evolve over time – and as expected for large, capital-intensive infrastructure projects like ours, our shareholders have always prepared long-term strategies that contemplate multiple scenarios that enable Atlantic Shores to reach its full potential”, Atlantic Shores said on 30 January.
“While we can’t comment on the views of shareholders, Atlantic Shores intends to continue progressing New Jersey’s first offshore wind project and our portfolio in compliance with our obligations to local, state and federal partners under existing leases and relevant permits.”
Contacted by offshoreWIND.biz , EDF Renewables said: “EDF Renewables believes Atlantic Shores’ projects can contribute to an ‘all-of-the-above’ American energy dominance strategy. Atlantic Shores projects are poised to provide urgently needed energy and jobs to the New Jersey economy and beyond within the American offshore energy industry.”
The Atlantic Shores joint venture holds leases for three offshore wind areas.
The lease block OCS-A 0499 off New Jersey, which was first secured by US Wind in 2015/2016 and acquired by EDF Renewables in 2018, was split into two areas in 2021. The southern part of the block contains Atlantic Shores South Project 1 and Atlantic Shores South Project 2, which received federal approval in October 2024.
The northern part of the block was given a new lease number, OCS-A 0549, and named Atlantic Shores North by the lease owners. The US Bureau of Ocean Energy Management initiated the environmental review of the Atlantic Shores North project at the beginning of last year.
The Shell-EDF joint venture also holds rights for lease area OCS-A 0541, which it won in the New York Bight auction in 2022. This lease area is currently referred to by the developer as Atlantic Shores Bight.