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Shell (RDS.A), EDF & Orsted Notch Up New Jersey Wind Farm Bids

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Two offshore wind project bids in New Jersey were recently awarded to a consortium, led by Royal Dutch Shell plc. (RDS.A - Free Report) and integrated energy company EDF along with Orsted, which participates as a separate entity. The state claimed that the environmentally-friendly endeavors will benefit domestic manufacturing and produce 7,000 jobs.

The award is one of the most significant achievements in American history, which will help bring the East Coast state a step closer to Governor Phil Murphy's green goals. The statesman has a vision of generating 7,500-megawatt (MW) of offshore wind power by 2035 and urgently plans to create 50% renewable energy for his province within 2050.

The tender to build the 1,510-megawatt (MW) Atlantic Shores wind farm was won by Shell and EDF of France while the proposal to construct the 1,148-MW Ocean Wind 2 project was clinched by Orsted of Denmark, the world's biggest offshore wind farm developer. The Atlantic Shores plant will be built 10.5 miles offshore the coastal towns in north Atlantic City while the Ocean Wind II project will be placed almost 14 miles away from Cape May.

According to the regulator, the contracts will lead to above 2,658 MW of electricity generation, enough to power 1.15 million homes and eliminate five million short tons of carbon gas emissions, yearly. However, the enormous quantity of electricity must still pass government authorization and avoid potential roadblocks like litigation from fishing groups and coastline communities. The two projects are not scheduled to be operational until at least 2027.

Meanwhile, last month, Shell forged a partnership with Norwegian power companies Lyse and BKK to jointly bid for a tender to secure the Nordic country's forthcoming offshore wind project, which makes it the latest energy bigwig to do so.

The trio is working to apply for licenses to execute projects in the Utsira Nord region, which are more suited to floating wind technology, and SorligeNordsjo II, which borders Danish seas and creates a convenient connect with continental Europe.

About Shell

Shell belongs to a global group of energy and petrochemical companies. It is involved in all phases of the petroleum industry, right from exploration to final processing and delivery. The company is scheduled to release second-quarter earnings results on July 29, 2021. The current Zacks Consensus Estimate is pegged at a profit of $1.01 per share for the to-be-reported quarter.

Zacks Rank & Key Picks

Shell currently has a Zacks Rank #3 (Hold). Some better-ranked players in the  energy  space are Whiting Petroleum Corporation (WLL - Free Report) , Matador Resources Company (MTDR - Free Report) and Oasis Petroleum Inc. (OAS - Free Report) , each presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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