A recent audit issued by PricewaterhouseCoopers (PwC) exposing the skyrocketing exorbitant costs of offshore wind development in Denmark—a major hub for projects—should be “a major wake-up call for Governor Murphy that even his massive government subsidies and ratepayer hikes won’t be enough to foot the ever-growing bill for his reckless pursuit of offshore wind,” said Rep. Chris Smith (R-Manchester).

            Denmark is home to offshore wind giant Orsted, which backed out of its two offshore wind projects in New Jersey late last year. In response, Murphy left Orsted off the hook for $175 million that was owed to the state and then actually moved up the already aggressive timeline for new proposals.

            “The evidence clearly shows that offshore wind projects are nowhere close to being economically viable—regardless of how much taxpayer money Governor Murphy forks over to foreign corporations like Orsted or how high energy prices are increased,” said Smith, who noted that Murphy’s own Division of Rate Counsel admitted his policies would result in higher energy rates.

            Smith said reports indicate the PwC study found a whopping $6.7 billion spike in planned Danish offshore wind construction costs since 2021, but a Danish green energy lobbying group acknowledged the actual figure will likely be even higher.

            “Instead of continuing to run headlong into an economic buzz saw, Governor Murphy should finally face the facts and stop throwing billions of hard-earned taxpayer dollars at unsound, improperly vetted offshore wind projects here in New Jersey,” said Smith.

            Just last fall, Danish offshore wind corporation Orsted announced it had ceased development of two offshore wind projects off the coast of New Jersey, citing anticipated impairments of approximately $2.3 billion as a result of “negative developments from adverse impacts relating to supply chains, increased interest rates…”

            “Despite Governor Murphy’s efforts to prop up these projects, Orsted concluded it would still lose money,” said Smith. “It’s long past time that Governor Murphy come to the same conclusion and concede that this is a terrible deal for New Jersey taxpayers before he leads our state to catastrophic financial ruin in pursuit of his blind ambition.”

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