by Kevin Killough
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.
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.
Photo “Offshore Wind Farm” by Lars Plougmann. CC BY-SA 2.0.
