Danish energy company Orsted suggested it may walk away from the project after suffering the loss. In July, the company threatened to abandon the windmill plans, prompting Governor Phil Murphy and Democrats in Trenton to give it a $1 billion bailout with money that was originally earmarked to offset rising energy costs for utility customers.
The foreign wind developer warned today they could additionally lose up to $2.3 billion which could lead them to cancel projects being developed along the New Jersey coast.
Sen. Michael Testa urged Gov. Murphy to preemptively reject any additional bailouts for Orsted. “It was a travesty when Governor Murphy bailed out Orsted at the expense of New Jersey taxpayers the first time they threatened to walk away,” Testa said. “I’m calling on the Murphy administration to state unequivocally that our residents will not be sold out for Orsted a second time,” said Testa (R-1). “Supply chain issues and rising inflation prove that these projects are unsustainable and the cost of continuing these projects will be too much of a burden for our state to bear. Not to mention the environmental damage that has ensued since survey work on these projects began. In the real-world costs matter and our residents cannot afford to be thrown under the bus again for the sake of saving Orsted.”