Trump Halts Orsted Wind Project in Another Blow to Industry
(Bloomberg) -- The Trump administration has halted work on an offshore wind farm being constructed off the coast of Rhode Island by Denmark’s Orsted A/S.
Interior’s Bureau of Ocean Energy Management issued an order requiring the company to halt ongoing activities on the project to address concerns that have arisen during a review of the project. The company “may not resume activities until BOEM informs you that BOEM has completed its necessary review,” said the order, which was dated Aug. 22.
The Revolution Wind project is stopping offshore activities after receiving the orders, Orsted said in a statement. Offshore construction had commenced following the final federal approval from BOEM last year, it said. The project is 80% complete, with all offshore foundations and 45 out of 65 wind turbines installed.
“Orsted is evaluating all options to resolve the matter expeditiously,” the company said. “This includes engagement with relevant permitting agencies for any necessary clarification or resolution as well as through potential legal proceedings.”
The Interior Department’s move to stop the Revolution Wind project, which was set to be operational next year, is the latest blow to the wind industry dealt by the Trump administration as it seeks to roll back Biden-era climate policies. The move underscores the risk that projects on federal lands and waters face from the White House’s attacks on renewable energy.
Earlier this month, the Interior Department canceled a massive wind project in Idaho. The agency has vowed a comprehensive review of its approval process for the projects, a move it warned could lead to halting wind development on federal land. The administration is acting to end what it is says has been preferential treatment for the wind and solar industries under President Joe Biden.
In April, Secretary of the Interior Doug Burgum halted work on Equinor ASA’s $5 billion Empire Wind farm off the coast of New York, but then reversed the decision a month later after the administration reached a deal with New York Governor Kathy Hochul to open the way for new gas pipelines to be built in the state.
The Revolution Wind project, which would provide power to 350,000 homes in Rhode Island and Connecticut, was approved by the Biden administration in 2023.
Orsted has seen its share price drop and credit downgraded in the face of the Trump Administration’s efforts to halt US offshore wind development. The company was forced to launch a highly dilutive rights offering earlier this month to fund a separate US offshore wind endeavor off the coast of New York.
Orsted said it is evaluating the potential financial implications of the latest development, and will advise the market on any impact of the order.
(Adds comments from Orsted from third paragraph.)
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