Senator Michael Testa urged Governor Murphy to preemptively reject any additional bailouts for Orsted after it was reported that the foreign offshore wind developer may walk away from their projects in New Jersey.

August 31, 2023

“It was a travesty when Governor Murphy bailed out Orsted at the expense of New Jersey taxpayers the first time they threatened to walk away. I’m calling on the Murphy administration to state unequivocally that our residents will not be sold out for Orsted a second time,” said Testa (R-1). “Supply chain issues and rising inflation prove that these projects are unsustainable and the cost of continuing these projects will be too much of a burden for our state to bear. Not to mention the environmental damage that has ensued since survey work on these projects began. In the real-world costs matter and our residents cannot afford to be thrown under the bus again for the sake of saving Orsted.”

Shares of Orsted A/S stock crashed 25% on Wednesday leading to a massive $8 billion loss in market value. The foreign wind developer warned they could additionally lose up to $2.3 billion which could lead them to cancel projects being developed along the New Jersey coast.

Orsted CEO Mads Nipper has frequently blamed supply chain issues, inflation, and rising interest rates as reasons for the company to consider walking away from the projects.

In July, Governor Murphy and Democrats in Trenton gave Orsted a $1 billion bailout with money that was originally earmarked to offset rising energy costs for utility customers.

Senator Testa warned that offshore wind developers would be “lining up at the trough of big government” to beg for money in the wake of Orsted’s first bailout, paid by New Jersey taxpayers.

“Recent polling suggests that support for offshore wind development is plunging. Despite this, Governor Murphy has shown that he is willing to forge ahead with his expensive energy master plan no matter the cost to New Jersey families,” Testa added. “If we even consider the possibility of subsidizing Orsted for a second time, who’s to say they won’t ask for a third, or a fourth bailout further down the road. We cannot allow foreign wind developers to continue taking advantage of our state. It’s time for Governor Murphy and every lawmaker in Trenton to stand up for New Jersey and say enough is enough.”

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