The move was welcomed by Rep. Chris Smith (R-NJ), a longtime critic of offshore wind development, who called Shell’s exit another “domino to fall” following the withdrawal of Orsted from its planned New Jersey wind projects last year. “Just like Orsted, Shell has determined that despite huge taxpayer subsidies and discussions of massive increases to ratepayers, they will still lose money,” Smith said. Click HERE for a deeper dive into the financial picture behind Offshore Wind.

Smith has repeatedly warned of what he sees as economic unsustainability, environmental risks, and national security threats associated with offshore wind projects. He argued that Shell’s decision further exposes the flaws in the approval process, which he claims failed to address key concerns before green-lighting the projects. “Shell’s pullout, along with President Trump’s executive order, will help shine a light on the Green New Deal whitewash and hopefully permanently halt all projects off New Jersey’s coast,” Smith said.

Shell’s Chief Financial Officer Sinead Gorman explained the company’s decision, stating that the project did not align with Shell’s capabilities nor provide the financial returns it was seeking.

While Atlantic Shores vows to continue moving forward with the project, the announcement follows growing economic pressures on the offshore wind sector, including rising supply chain costs, inflation, and shifting political policies. Adding to the uncertainty, President Trump recently issued an executive order pausing all offshore wind projects until a full review can be conducted to assess their long-term impact and feasibility.

Rep. Smith reiterated his long-standing concerns that offshore wind farms pose risks beyond just financial losses. He has previously warned that they could:
✅ Disrupt critical national security radar systems
✅ Threaten commercial and recreational fishing industries
✅ Harm tourism-dependent coastal economies
✅ Impede Coast Guard search and rescue operations

The congressman also pointed to local opposition in Sea Girt, where residents have pushed back against the large-scale electrical cables planned for residential neighborhoods and major thoroughfares. “If foreign companies like Shell think they can come to the Jersey Shore, destroy it, and our way of life just to soak up easy federal subsidies and hard-earned money from ratepayers—against the wishes of local communities—they are sorely mistaken,” Smith stated.

Despite Shell’s withdrawal, Atlantic Shores maintains that it will push forward with development. However, with increasing economic and regulatory uncertainty, the project’s future remains highly in question.

With two major players—Orsted and now Shell—pulling out of New Jersey’s offshore wind plans, opponents like Smith see the tide turning against offshore wind in the state. Whether this marks the beginning of a larger industry retreat or a temporary obstacle remains to be seen.

As the due diligence stage will likely move under Interior Secretary Doug Burgum now that President Trump has paused offshore wind, we at TAPinto are working on a “there's no proof/there is proof," debate between the government and offshore developers and those opposing offshore wind pertaining to the ongoing whale deaths since offshore wind projects began its seafloor exploratory process back in 2016. We hope to have that story out no later than the second week of February. Stay tuned!