TLDR
- Orsted stock crashed 17% after Trump administration stopped Revolution Wind project construction
- Project was 80% finished with 45 turbines already installed off Rhode Island coast
- Company faces potential $3 billion in losses and impairments from the halt
- Orsted continues with $9.4 billion emergency share sale despite setbacks
- Stop-work order creates major uncertainty for offshore wind investments
Orsted shares tumbled Monday morning after the Trump administration ordered an immediate halt to construction on the company’s Revolution Wind project off Rhode Island. The Danish wind developer’s stock fell to 180.35 kroner as investors reacted to the unexpected federal intervention.
The Bureau of Ocean Energy Management issued the stop-work order late Friday. Acting Director Matthew Giacona cited concerns from a Trump administration review of offshore wind projects.
The timing proves devastating for Orsted. Revolution Wind was 80% complete with 45 of 65 turbines already installed in federal waters.
Trading volume surged as shares dropped over 45% year-to-date. The latest decline adds to mounting pressure on the state-owned Danish company.
Trump’s Wind Energy Crackdown Intensifies
President Trump suspended new offshore wind leasing on his first day in office. He has consistently criticized wind energy as unreliable and expensive throughout his presidency.
The Revolution Wind project represents a joint venture with Global Infrastructure Partners’ Skyborn Renewables. Construction began last year with plans to power Rhode Island and Connecticut homes.
Orsted confirmed receipt of the federal order over the weekend. The company said it’s exploring options to resolve the situation and hopes to resume work by late 2026.
Baader analyst Pierre-Alexandre Ramondenc warns the halt could trigger $3 billion in impairments and cancellation charges. He called the move “political hostage-taking” given the project’s advanced stage.
Emergency Share Sale Continues Despite Setbacks
Orsted announced plans for a $9.4 billion emergency rights issue on August 11. The company needs fresh capital after struggling with U.S. market conditions.
Shares had already fallen 30% since the rights issue announcement. Monday’s drop brings total declines to nearly 50% in two weeks.
The Danish government will provide half the funding through its 50.1% ownership stake. The share sale would rank as Europe’s largest energy sector offering in over a decade.
Financial Pressure Mounts
Sydbank analyst Jacob Pedersen called the development a “huge hurdle” for raising needed capital. He expressed shock at the federal intervention timing.
AlphaValue’s Pierre-Alexandre Ramondenc warned the stop-work order could jeopardize the entire rights issue success. Investor confidence now faces a critical test.
Orsted maintains the share sale was sized to handle U.S. portfolio uncertainty. Company executives said they’re evaluating all options including potential legal proceedings.
The halt creates fresh regulatory uncertainty for offshore wind investments. Orsted operates wind farms across Europe but has faced mounting U.S. challenges recently.
The company couldn’t sell part of its New York wind farm earlier this month, citing adverse market conditions.
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