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Shell (NYSE:SHEL) said Wednesday it has sold its 50% stake in SouthCoast Wind Energy to joint venture partner Ocean Winds North America for an undisclosed sum; Ocean Winds is a 50-50 offshore wind JV owned by EDP Renewables and Engie (OTCPK:ENGIY).
SouthCoast Wind was created in 2018 as a 50-50 joint venture to develop a proposed offshore wind farm with a capacity of ~2,400 MW in U.S. federal waters off the coast of Massachusetts.
Shell (SHEL) remains a 50-50 partner in an additional U.S. offshore wind joint venture, Atlantic Shores Offshore Wind, which is developing a portfolio of wind farms off the coast of New Jersey and New York.
U.S. offshore wind projects have been hurt by surging costs due to rising inflation, higher borrowing costs and supply chain snags; Orsted last year halted the development of two U.S. offshore wind projects, and partners BP and Equinor earlier this year terminated a deal to sell power to New York state from their proposed Empire Wind 2 offshore wind farm.
