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