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

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.