June 27, 2023 — According to a Politico article by Ry Rivard, the Danish wind developer responsible for constructing New Jersey’s first industrial offshore wind farm is seeking additional funds from state taxpayers before proceeding with their project to industrialize the state’s inshore waters.
Rivard reported from a Board of Public Utilities (BPU) meeting, where the five-member board began accepting proposals for new wind farms off the coast of New Jersey. During the meeting, it was revealed that the governor and the wind developer were renegotiating previously agreed-upon terms.
The negotiations between the Murphy administration and Ørsted, the Danish energy giant, have been ongoing to ensure the financial sustainability of the state’s first offshore wind farm. Ørsted is seeking to modify a portion of the 2019 deal made with the BPU, citing factors such as inflation, interest rates, and supply chain challenges. However, the specific details of Ørsted’s requests from the state have not been disclosed publicly. Two BPU commissioners revealed that Ørsted aims to retain federal tax incentives from the Inflation Reduction Act, which could cover up to 40% of construction costs.