Shell has formally exited the US offshore wind sector, marking a significant shift in the energy giant’s strategy. The company announced it has transferred its 50% stake in the Atlantic Shores offshore wind project to joint venture partner EDF, effectively ending its involvement in the venture.
In a statement, Shell explained the decision aligns with its power strategy, focusing on maximizing the value of existing platforms and refining its portfolio. “This decision was taken in line with Shell’s power strategy, where we continue to maximize the value of our platforms and high-grade our portfolio, shifting away from capital-intensive generation projects to assets that support our trading and retail strengths,” the company said.
Atlantic Shores had secured federal approval in October 2024 for an up-to 2.8GW development off the coast of southern New Jersey, featuring up to 197 turbines. However, in August, the state of New Jersey approved a request from the Shell-EDF joint venture to cancel its offtake agreement for 1,500MW from the project’s first phase.
Shell’s withdrawal from Atlantic Shores and the broader US offshore wind sector raises questions about the company’s long-term commitment to renewable energy projects. While Shell has emphasized its focus on trading and retail strengths, the move could signal a broader trend of oil majors reassessing their investments in capital-intensive renewable energy ventures.
This development may also impact the US offshore wind sector, which has seen significant growth in recent years. Shell’s exit could create opportunities for other players to enter the market, but it may also raise concerns about the stability and long-term viability of offshore wind projects. As the sector continues to evolve, the role of major energy companies like Shell will be closely watched, with implications for the pace and scale of the transition to renewable energy.