N.J. port meant to be a wind hub is now at the center of a bitter legal feud

The operator of a South Jersey commercial port is moving to evict a wind-energy manufacturer after promised projects failed to materialize.

The lawsuit, filed in Gloucester County Superior Court on Oct. 7, marks another setback for New Jersey’s offshore wind ambitions.

Holt Logistics Corp., which manages the Paulsboro Marine Terminal, is asking a judge to force EEW Group off the site after years of stalled projects and mounting safety concerns.

The dispute underscores how a $250 million state-backed push to make Paulsboro a hub for wind energy has unraveled amid canceled projects, political opposition, and industry setbacks.

The EEW Group, a German pipe maker, began leasing space at Holt’s port in Paulsboro in 2021. Their objective was to build huge “monopiles,” the poles on which turbines spin to generate electricity.

Four years later, the port manager is asking a judge to order that the European builder vacate its property, located on the bank of the Delaware River in Paulsboro.

Through its subsidiary EEW-AOS, the company is leasing about 70 acres at the Paulsboro port to build monopiles, which are steel foundations for wind turbines that can reach up to 400 feet long, according to court filings reviewed by NJ Advance Media.

The lawsuit names Paulsboro Waterfront Development, an affiliate of Holt, as the plaintiff.

In its three-count lawsuit, Holt accuses EEW of breaching its lease agreement after offshore wind production stalled and alleges violations of safety rules and federal labor laws.

A spokesperson for Paulsboro Waterfront Development said the lawsuit seeks to have the leased area returned into its possession.

“The sole purpose of the sublease was to permit EEW to manufacture monopiles to support the New Jersey offshore wind project,“ Kevin Feeney, a spokesperson for Paulsboro Waterfront Development, said in an email to NJ Advance Media.

”The wind farm project fell apart and late last summer, EEW removed all improvements that would allow for any monopile fabrication. They have abandoned the lease and its sole purpose,” he added.

“The Paulsboro Marine Terminal sits idle since the collapse of the wind energy industry in New Jersey,” Feeney said. “We are confident that as soon as the Terminal can be developed as originally planned – as a thriving facility for both breakbulk and container cargo – it can serve as an economic engine for South Jersey that will bring additional investment and jobs to the region.”

Johnathan Rardin, an attorney for EEW, declined to comment when reached by NJ Advance Media.

The port operator also claims the company tried to remove improvements from the site.

Court exhibits include letters referencing an April 2025 fire caused by workers leaving hot monopile material unattended, as well as a letter noting that state inspectors found fire code violations during a January visit, according to the New Jersey Department of Community Affairs.

EEW last month denied the accusations, filing a countersuit against Holt in its response to the port manager’s claim. The company said the spring fire was contained and that the fire code violations were fixed quickly.

“This is not a run-of-the-mill commercial real estate dispute,” Holt’s lawsuit states. “Put simply, Paulsboro Marine Terminal is a public asset. As such, the opportunity cost of EEW-AOS’s inactivity is enormous: the diminished inflow of cargo and commodities translates into diminished industrial capacity and diminished demand for labor.”

Michael O’Mara, an attorney for Holt, declined to discuss the case when reached by NJ Advance Media. He directed questions directly to Holt, which did not respond to an emailed request for comment.

Ørsted and Atlantic Shores, two of the larger companies preparing to build offshore wind farms, have since canceled their projects.

Last November, workers in Paulsboro began dismantling more than a dozen steel monopiles and recycling their metals.

Holt claims it was “cajoled” into leasing its property by political and civic leaders bullish on an industry that saw little to no success.

Holt’s lawsuit cited the struggling wind industry, which Gov. Phil Murphy sought to bolster with a $250 million investment in the port, promoting it as a project to transform the site into one of the nation’s largest wind-energy hubs.

“Although New Jersey’s offshore wind plan was attractive in theory and initially successful in practice (with massive initial investments translating into early infrastructural progress), that success was short-lived,” the lawsuit states.

In its response, EEW objected to the characterization.

“EEW is of the opinion that its ultimate success in using the site will benefit the State of New Jersey, Gloucester County, and the Borough of Paulsboro,” the response states. “EEW’s use of the Premises will add additional industrial and manufacturing capacity and provide jobs on the site and to related businesses.”

Murphy’s administration planned a two-site process, in which the Paulsboro facility would construct the monopiles and bases for the wind farms.

Miles south in Salem County, a separate facility was expected to construct turbines but never began production at its anticipated start date in 2024.