Wind developer will keep more than half of $300 million put up for offshore project it canceled

New Jersey Gov. Phil Murphy had vowed to fight “tooth and nail” to keep the $300 million the company put into escrow, but the agreement allows the state to keep $125 million.

Published: May 29, 2024 12:30pm

New Jersey Gov. Phil Murphy says offshore wind developer Orsted will pay $125 million for canceling two projects. 

As part of a $1 billion tax incentive law that Murphy signed last summer, Orsted put $200 million into escrow for supply chain and manufacturing investments, according to NJ.com, in addition to a $100 million security, to ensure the two-phase Ocean Wind would be operational by December 2025.

Orsted announced in November that it was canceling both projects, citing inflation, interest rates and supply-chain issues.

Murphy had vowed to fight “tooth and nail” to keep the $300 million the company put into escrow. 

The agreement, announced Tuesday, will allow New Jersey to keep $125 million and the two parties agree to release any further claims related to the project, according to Murphy’s announcement. The funds will be put toward future offshore wind developments.

Unlock unlimited access

  • No Ads Within Stories
  • No Autoplay Videos
  • VIP access to exclusive Just the News newsmaker events hosted by John Solomon and his team.
  • Support the investigative reporting and honest news presentation you've come to enjoy from Just the News.
  • Just the News Spotlight

    Support Just the News