TLDR
- Orsted shares plunged 17% after Trump administration ordered stop-work on Revolution Wind project 80% complete
- Danish wind company will continue with $9.4 billion emergency rights issue to strengthen finances
- Revolution Wind project has 45 of 65 turbines already installed off Rhode Island coast
- Stop-work order creates potential $3 billion in impairments and cancellation charges
- Trump suspended new offshore wind leasing on first day in office, calling wind energy unreliable
Orsted shares dropped as much as 17% Monday morning after the Trump administration ordered construction to halt on the company’s Revolution Wind project off Rhode Island. The stop-work order came just weeks after the Danish wind developer announced plans for a $9.4 billion emergency rights issue.
The Bureau of Ocean Energy Management published the order late Friday. Acting director Matthew Giacona cited concerns from a Trump administration review as the reason for halting work.
The timing couldn’t be worse for Orsted. The Revolution Wind project was 80% complete with 45 out of 65 wind turbines already installed.
Trading opened with shares at 180.35 Danish kroner, down from previous levels. Year-to-date performance has now fallen over 45% for the Danish energy company.
The stop-work order compounds challenges Orsted faces in the U.S. market. President Trump has repeatedly criticized wind energy as ugly, unreliable and expensive.
On his first day in office in January, Trump suspended new offshore wind leasing. The administration ordered environmental and economic reviews of existing projects.
Orsted confirmed it received the order over the weekend. The company said it’s looking at options to resolve the matter quickly and hopes to resume construction in the second half of 2026.
The Revolution Wind project is a joint venture with Global Infrastructure Partner’s Skyborn Renewables. Construction began last year with plans to power homes across Rhode Island and Connecticut.
Financial Impact Mounts
Orsted announced its emergency rights issue on August 11. The company needs to raise 60 billion Danish crowns to shore up its finances after struggling in the U.S. market.
Half the money will come from Danish taxpayers through the government’s 50.1% ownership stake. The share sale would be the biggest in the European energy sector in over a decade.
Shares had already fallen 30% since announcing the rights issue earlier this month. Monday’s drop brought the total decline to nearly 50% in just two weeks.
Baader analyst Pierre-Alexandre Ramondenc said the stop-work order raises the prospect of $3 billion in impairments and cancellation charges. He called the news a “major shock” that amounts to “political hostage-taking” given the project’s advanced stage.
Sydbank analyst Jacob Pedersen said he was “stunned” by the development. He called the halt a “huge hurdle” for raising the needed capital.
Company Stands Firm
Despite the setbacks, Orsted said Monday it will proceed with the planned rights issue. Company executives believe the share sale was sized appropriately to handle uncertainty in their U.S. offshore wind portfolio.
AlphaValue analyst Pierre-Alexandre Ramondenc warned the U.S. move could put the entire rights issue at risk. The success of the capital raise now depends heavily on investor confidence.
Orsted said the stop-work order “emphasizes the increased regulatory uncertainty for offshore wind in the U.S.” The company is evaluating financial implications and considering legal proceedings.
The Danish state-owned company operates wind farms across Europe and has been expanding in the U.S. market. Recent material adverse developments in American offshore wind markets have forced the company to seek emergency funding.
Orsted couldn’t sell a chunk of its wind farm off the New York coast earlier this month. The company blamed challenging conditions in the U.S. offshore wind sector.
The Revolution Wind project sits on the outer continental shelf in U.S. federal waters outside state jurisdiction. This puts it directly under federal oversight and Trump administration policies.
