New Jersey and wind farm developer Orsted settle claims for $125M over scrapped offshore projects
ATLANTIC CITY, N.J. (AP) — Danish wind farm developer Orsted will pay New Jersey $125 million to settle claims over the company’s cancellation of two offshore wind farms last year — a little over a third of what the company once was required to pay.
The state’s Board of Public Utilities said Tuesday that New Jersey and Orsted have settled claims against each other stemming from the company’s decision last October to scrap two wind farms off the state’s southern coast.
The state said the $125 million it will receive will be used to support investments in wind energy facilities, component manufacturing facilities, and other clean energy programs.
Before the projects were abandoned, Orsted put up a $100 million guarantee that it would have one of them, Ocean Wind I, built by the end of 2025. It also had been obligated to pay an additional $200 million toward the development of the offshore wind industry in New Jersey.