Orsted shares sink as US halts $1.5 billion offshore wind project
Shares in Danish energy giant Orsted tumbled 17% on Monday after US regulators ordered a halt to its Revolution Wind project off Rhode Island, dealing another blow to the struggling offshore wind sector.
The US Bureau of Ocean Energy Management (BOEM) issued the work-stop order late Friday, suspending construction on the $1.5 billion project, which was about 80% complete with 45 of 65 turbines installed. Revolution Wind had been slated to power 350,000 homes in Rhode Island and Connecticut starting next year.
The suspension marks the second major US offshore wind project paused this year, following April’s halt of Equinor’s Empire Wind 1 off New York. Both moves come amid President Donald Trump’s sharp pushback against renewable energy investments. Trump has called offshore wind costly and unreliable, freezing new leases pending further environmental and economic reviews.
Orsted, the world’s largest offshore wind developer, has already been battered by surging costs, rising interest rates, and supply chain bottlenecks. The company’s market value has collapsed 87% from its January 2021 peak. On Monday, its shares hit a record low of 173.4 Danish crowns ($27.15) before recovering slightly to trade down 15.9% at 180 crowns by 1158 GMT.
Despite the setback, Orsted said it will press ahead with a $9.4 billion rights issue announced earlier this month to shore up its balance sheet, calling the suspension “within the expected risk profile” for its US expansion. The Danish government, which owns 50.1% of the company, is backing the capital raise.
Analysts said the Revolution Wind suspension may prove temporary. Norway’s Equinor managed to restart work on Empire Wind 1 after diplomatic efforts earlier this year. “The most likely scenario is that this will be solved in Orsted’s favour, either with political help or in courtrooms,” said Sydbank analyst Jacob Pedersen.
Still, strained ties between Denmark and the Trump administration—exacerbated by past disputes over Greenland—could complicate diplomacy. On Friday, Denmark’s foreign minister signed a separate clean energy agreement in California with Governor Gavin Newsom, a vocal Trump critic.
Opposition lawmakers in Copenhagen have questioned the state’s financial backing of Orsted, with some suggesting legal channels may offer the clearest path forward. Equinor, which holds a 10% stake in Orsted, declined to comment on the situation, Reuters reported.
