Shares in Orsted (ORSTED.CO) slid 17% on Monday after the U.S. halted the Danish company’s Revolution Wind project off Rhode Island, adding to concerns about the future of the U.S. offshore wind market as President Donald Trump curbs investment in renewable energy.
Orsted, the world’s biggest offshore wind farm developer, had already been struggling with project delays and cancellations in the United States and elsewhere due to rising costs, higher interest rates, and supply chain problems. It has lost 87% of its market value since its peak in January 2021.
The U.S. Bureau of Ocean Energy Management (BOEM) issued a work-stop order late on Friday on Orsted’s $1.5 billion project, which is 80% complete with 45 out of 65 turbines installed. The wind farm was expected to supply electricity to 350,000 homes in Rhode Island and Connecticut starting next year.
It was the second major suspension this year by BOEM, which halted Norwegian energy company Equinor’s Empire Wind 1 project off the coast of New York in April. President Trump has repeatedly criticised wind energy as ugly, unreliable and expensive and has suspended new offshore wind leasing pending environmental and economic review of projects.
Despite the setback, Orsted, which is 50.1% owned by the Danish state, reiterated on Monday plans for a $9.4 billion emergency rights issue announced earlier this month, signalling it remains committed to its U.S. projects.
Analysts said the suspension of the Revolution Wind project could be reversed, as was the case with Equinor’s Empire Wind 1 project following diplomatic efforts by Norway’s government.
“The most likely scenario is that this will be solved in Orsted’s favour, either with political help or in courtrooms,” Sydbank analyst Jacob Pedersen said.
However, Denmark’s strained relations with the U.S., including Trump’s controversial comments about Greenland, could complicate diplomatic efforts. On Friday, Denmark’s Foreign Minister Lars Lokke Rasmussen signed an agreement in California to strengthen ties with Governor Gavin Newsom, who has recently criticized Trump publicly.
