A critical permit for the Atlantic Shores South offshore wind farm, a joint venture of Shell New Energies US LLC and EDF Renewables North America, has been invalidated by an administrative appeals board. The decision comes just seven weeks after President Donald Trump expressed hope that the project was “dead and gone” and after the project had obtained a final air pollution permit from the Environmental Protection Agency (EPA) in November.

The decision to remand the permit to the EPA for reconsideration is seen as a major blow to the offshore wind industry, which has been a target of criticism from Trump. The project, which is planned to be developed 8.7 miles off the New Jersey coast, would have included up to 200 wind turbines and would have provided up to 2.8 gigawatts of power.

The decision was made by the US Environmental Appeals Board, which granted the EPA’s request to remand the permit after a legal challenge from local residents who oppose the project, citing concerns about environmental impacts. The developer, Atlantic Shores Offshore Wind LLC, expressed disappointment with the decision, noting that regulatory certainty is crucial for deploying major energy projects.

The decision is also seen as a manifestation of Trump’s January 20 executive order, which directed an immediate review of wind leasing and permitting on federal land. The order also tasked the Interior Department with reviewing the necessity of terminating or amending existing wind energy leases and identifying legal bases for removal. With ongoing litigation challenging wind farm approvals, the decision could present an opening for the Interior Department to revisit earlier approvals.