Offshore wind has been trending globally in the renewable energy space in the last decade. From China to the UK, global wind farms are getting larger as more go online each year. The offshore wind targets will reach hundreds of gigawatts from Europe to China by 2030.
In the US, the same trend is happening on the East Coast. The government is capitalizing on the benefit of utilizing offshore wind by working with the federal government and local communities.
For New Jersey, taking a leadership role in offshore wind energy in America can start a revolution for its economy. Electricity generation will not only get cleaner, but their supply chain will also develop via their skilled workforce and industrial hubs.
Offshore wind development is thus accelerating where the wind blows most favorably–in Mid-Atlantic states–particularly in New Jersey.
New Jersey is investing in a wind port and three upcoming offshore wind farm projects to lead the American offshore wind industry. The state has made the right moves to push for commercial wind energy in its offshore areas.
The state is banking on early moves to support domestic content in manufacturing and logistics. Thus, the state is signaling that offshore wind presents more opportunities to local communities and investors in terms of employment, investment, and green energy.
What is the potential for NJ offshore wind supply chain?
New Jersey will capitalize on the US $100 billion offshore wind market via its manufacturing industry. Harnessing the existing industrial hubs of the state to assemble renewable energy technology is key to unlocking this potential.
In response, the NJ state government is building the country’s first fit-for-purpose wind port. In the wind port, the marshaling and assembly of the offshore wind turbines will be complete before being sent off to the offshore wind farm.
The port hub will facilitate hundreds of jobs annually, link tier 2 and tier 1 contractors, and act as a supply chain hub. The port hub will help jumpstart the local economy by focusing on the wind farm and wind turbine components that enable local contractors.
Developing New Jersey’s Supply Chain
Compared to Europe’s thousands of offshore turbines, the offshore industry in the US is in its infancy. NREL posits that the offshore wind industry needs 2,100 turbines and foundations to achieve its goal by 2030.
The federal government aims to achieve the near-term 2030 target of 30 GW installed capacity. If successful, the state of New Jersey can power half a million homes starting with Ocean Wind in 2024. It will contribute significantly to the federal goal.
This growth trajectory of the state’s offshore wind falls right into where the federal government needs it to be, which is a boom for the clean energy economy of New Jersey.
What is the New Jersey Wind Port?
Located in Salem County along the Delaware River, the New Jersey Wind Port is the first purpose-built port for offshore wind farms.
Tier 1 contractors will use the wind port as an assembly and construction site. The port also serves as a marshaling area for the components in the wind farm during construction.
The port will start operating by 2024 when Ørsted is its first lessee to develop its Ocean Wind 1 project.
Does NJ have good offshore wind potential?
New Jersey and the rest of the Mid-Atlantic states benefit from the Atlantic Ocean’s wind power potential.
New Jersey’s excellent location on the East Coast puts it high up the curve of the offshore wind industry’s potential growth. The highest potential in the Northeast (orange on the map) continues to carry a lot of wind speed towards New Jersey, too. According to NREL, the wind speed in New Jersey is showing modest but strong potential at 8 to 8.5 meters per second.
New Jersey’s economy has plenty of opportunities from the wind industry too. With the major components present, the future looks bright for a supply chain to emerge out of the state.
New Jersey is developing a dedicated wind port, a blue-collar workforce, a talent pool of 90,000 workers, and a plan set in place by the state which will stimulate offshore wind investments up to 2035. These infrastructure developments in the pipeline make the state a viable location for building the large-scale offshore wind industry in the Mid-Atlantic states.
New Jersey Offshore Wind in 2022
In 2022, New Jersey has zero offshore wind capacity. With the upcoming offshore wind projects in development, this capacity will expand to more than 3 GW by 2030 and 7.5 GW by 2035.
What are the offshore wind projects in New Jersey?
Four offshore wind farms are developing the offshore wind industry on the coast of New Jersey. These four wind farms consist of 3.7 GW that will connect to the state’s commercial grid.
| Wind Farm | Developer | Online Date | Power |
|---|---|---|---|
| Ocean Wind 1 | Ørsted | 2023 | 1.1 GW |
| Ocean Wind 2 | Ørsted | 2024 | 1.1 GW |
| Atlantic Shores | Shell/EDF | 2028 | 1.5 GW |
| Empire Wind | Equinor | 2026 | 2.1 GW |
Ørsted is leading the development of offshore wind farms in the area, as it is aiming to be the most sustainable energy company in the world. The company is developing Ocean Wind 1 and Ocean Wind 2 projects with a combined 2.2 GW capacity.
Ørsted will start construction of Ocean Wind 1 by 2023 and go online by 2024. Ørsted’s Ocean Wind 2 is in the early planning stages.
Atlantic Shores Offshore Wind will be America’s largest offshore wind farm at 1.5 GW installed capacity, which will go online in 2028.
Before the Atlantic Shores offshore wind goes online, Ocean Wind 1 will have already delivered four years of clean energy to the state of New Jersey. Ocean Wind 1 has 1.1 GW, which will get commissioned in 2024.
The Empire Wind Farm, meanwhile, is technically connected to New York. The state of New York awarded the energy certificates to the developer, Equinor, in 2020. New Jersey’s review process for Empire Wind aims to achieve federal consistency to federal law due to the farm’s closeness to the Jersey Shore.
New Jersey Board of Public Utilities will soon publish more offshore wind solicitations to reach the state’s goal of 7.5 GW of capacity by 2035.
Future areas for leasing will base on the procurement schedule published by the New Jersey Economic Development Authority (NJEDA).
How many onshore wind farms are in New Jersey?
Jersey-Atlantic Wind Farm will be the only operating wind farm in the state in 2022.
Who are the major offshore wind project developers in New Jersey?
Four global corporations are investing in projects off the coast of New Jersey.
Ørsted, the global leader in offshore wind portfolio, owns the Ocean Wind I and the Ocean Wind II projects. Ocean Wind 1 is the first offshore wind in the state which will electrify the grid in 2024. The second part, Ocean Wind 2, will send power to the grid in 2028.
When Ørsted’s Ocean Wind II gets commissioned, the project can deliver tremendous economic benefits to coastal communities. The two phases of Ocean Wind will comprise the largest offshore in the United States.
Atlantic Shores Offshore Wind (a joint venture of Shell New Energies and EDF Renewables North America) owns the Atlantic Shores Offshore Wind project. The project will send clean energy to the grid in 2028 to around 700,000 homes.
Equinor, the state-owned energy company of Norway, owns the Empire Wind 1 and 2 projects. Both projects aim to go online in 2026. The New York state awarded the OREC (Offshore wind Renewable Energy Certificate) to the Empire Wind projects. Empire Win 1 and 2 are both located on the outer continental shelf of New York.
New Jersey, in line with the federal process under the Coastal Zone Management Act, will review the project via its Department of Environmental Protection. New Jersey’s part also includes working with the Bureau of Ocean Energy Management in reviewing Equinor’s proposal because of its closeness to the Jersey shore coast.
The New Jersey Department of Environmental Protection will issue its federal consistency decision in January 2023.
Does NJ use wind energy?
Wind turbine only contributes .03% of the electricity in New Jersey. The wind is the least utilized resource in the state, which is reflective of the state of the offshore wind industry in the US.
US investment in offshore wind is only beginning to catch up with other renewable sources. With the current pipeline of New Jersey, 2028’s electricity mix might see the wind propel to more than 10% of its electricity generation. Although far from the output of natural gas or nuclear, this growth will be more than three-hundred fold of its current production.
New Jersey uses 47% of its electricity from natural gas and 45% from nuclear.
Can wind energy be used in New Jersey?
The state of NJ already has more than 3 GW of offshore wind planned near its shores. All of these projects will connect to the grid of New Jersey before 2030.
The NJEDA also launched in December 2021 a tax credit program to encourage qualifying offshore wind projects to go ahead with investment plans.
Are there wind turbines in NJ?
The only operating wind farm in NJ is the Jersey-Atlantic Wind farm with five turbines. Aside from this farm, Bayonne Municipal Utilities Authorities has one turbine installed. There are no other onshore wind farms in NJ other than the Jersey-Atlantic.
How many windmills are in NJ?
In 2022 6 windmills are operating in NJ, all located onshore.