Gov. Murphy Signs New Jersey Tax Cuts for Orsted Offshore Wind Farm – NBC10 Philadelphia

New Jersey Gov. Phil Murphy on Thursday signed a bill giving tax breaks for the first of two planned energy projects off the Jersey Shore by Danish offshore wind developer Orsted.

The Democratic governor said he needs financial help to ensure that offshore wind projects and the jobs they create come to New Jersey rather than competing states.

Ocean Wind 1 will help New Jersey move one step closer to achieving a 100% clean energy economy by 2035, providing thousands of high-paying union jobs and significant environmental benefits for generations to come. create. https://t.co/p5vl2wOW0T

— Governor Phil Murphy (@GovMurphy) July 6, 2023

Before the bill was dry, it faced pressure from another offshore wind farm to seek similar assistance.

The bill would allow Orsted to keep federal tax credits that would otherwise have to be passed on to New Jersey utility payers. Lawmakers who narrowly approved the bill last week said Orsted needed help to deal with inflation and the lingering effects of the coronavirus pandemic.

“If we don’t find a solution, this won’t happen in New Jersey,” Murphy said after a ceremony at the Paulsboro Marine Terminal, where a giant wind turbine support structure called a monopile is being built. rice field. “We know war, inflation and supply chains in Europe. These projects are getting much more expensive and we are not the only ones dealing with it. Either let the industry and the jobs associated with it thrive, or go somewhere else.”

Neither the company nor Democrats have disclosed the amount of the tax cut, but Republican state senator Edward Darr estimates it at nearly $1 billion.

Atlantic Shores said earlier this week: The company, too, wants government help to build its own wind farm off the coast of southern New Jersey, and has warned the project is “at risk” without additional funding from the government.

Murphy said he was “tolerant” of Atlantic Shores’ request.

Atlantic Shores is a joint partnership between Shell New Energies US LLC and EDF-RE Offshore Development LLC.

The bill was signed the day after Orsted’s Ocean Wind I project received permission from the U.S. Ocean Energy Administration to begin construction of a wind farm 13 to 15 miles offshore from Atlantic City and Ocean City. was done in Additional approvals are still required at the federal and state levels, but Orsted said he expects approval by the second quarter of 2024.

The company plans to begin construction of a wind farm with about 100 wind turbines this fall. It aims to provide enough electricity to power 500,000 homes.

Orsted has also received approval to build a second wind farm off the coast of New Jersey, but the project is still in the regulatory process.

At the ceremony, Murphy also signed legislation to encourage filmmaking in the state and help fund residential and commercial projects in economically challenged areas.