The British energy giant, Shell plc SHEL, which entered into a joint venture (JV) with EDF-RE Offshore Development, LLC through its subsidiary Shell New Energies US LLC to create Atlantic Shores Offshore Wind, has received final approval from the federal agencies for two of its wind farms.

Overview of the SHEL’s JV

The Atlantic Shores JV is a partnership between SHEL and EDF Renewables where both companies share a 50% stake in constructing two offshore wind farms. The wind farms, located 8.7 miles off the New Jersey coast, will not only boost the production of clean energy in the region but also generate upto 2800 megawatts of renewable power from about 200 turbines. Atlantic Shores JV, slated to construct New Jersey’s first offshore wind farm, is significant enough to power up more than one million homes in New Jersey.

With the approval of the Bureau of Ocean Energy Management, the construction of the wind farms is slated to begin by 2025. It will mark a critical milestone for New Jersey in achieving 100% clean energy by the end of 2035.

Environmental Impact and Challenges

While the JV focuses on clean air and renewable power, it comes with some environmental concerns where the marine animals are supposed to be at risk due to the cables that would be laid beneath the seabed to transfer electricity. Some environmental groups have also raised concerns about its potential impact on local ecosystems and fishing industries.

However, Atlantic Shores is planning to proceed with the project after getting the required regulatory approvals and taking reasonable measures to mitigate any potential harm to wildlife.

Road Ahead for SHEL’s JV

Atlantic Shores will not only produce clean energy for New Jersey but will also boost its economic growth. The construction of two wind farms under the project will lead to the creation of many in-demand jobs and will also increase investment in the supply chain.

Atlantic Shores is geared up to start generating power by 2029. Along with achieving the goals of a 100% renewable energy state in New Jersey, the JV is targeting to achieve the goals set by the Biden-Harris administration to deploy 30 gigawatts of offshore wind energy by 2030.

SHEL’s Zacks Rank and Key Picks

Shell is one of the primary oil super majors - a group of U.S. and Europe-based big energy multinationals with operations that span almost every corner of the globe. Currently, SHEL has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some better-ranked stocks like Archrock AROC, PEDEVCO Corp. PED and Sasol SSL.While Archrock and PEDEVCO currently sport a Zacks Rank #1 (Strong Buy), SSL carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.