Trump administration halts Orsted's Rhode Island wind project, shares sink 17%
The logo for Orsted can be seen on the jacket worn by an employee at Orsted's offshore wind farm near Nysted · Reuters
Stine Jacobsen
Sun 24 August 2025
COPENHAGEN (Reuters) -Orsted said on Monday it would continue with a plan to raise capital after the Trump administration ordered the offshore wind farm developer to stop construction on a near-completed project off Rhode Island, sending its shares down 17%.
The company, 50.1% owned by the Danish state, said earlier this month it would seek to shore up its finances through a $9.4 billion emergency rights issue.
"The planned rights issue had been sized to provide the required strengthening of Orsted's capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Orsted's U.S. offshore wind portfolio," it said in a statement.
The Trump administration's Bureau of Ocean Energy Management (BOEM) published its stop-work order late on Friday, forcing suspension of a project that was 80% complete with 45 out of 65 wind turbines installed.
The timing of the halt to Revolution Wind off Rhode Island was particularly damaging to Orsted, which announced earlier this month a plan to raise 60 billion Danish crowns ($9.42 billion) through a rights issue.
Orsted's shares, already down 30% since announcing its plan on August 11, fell as much as 17% in early trading on Monday.
"This is a huge hurdle with regards to raising capital," Sydbank analyst Jacob Pedersen told Reuters, adding he was "stunned."
AlphaValue analyst Pierre-Alexandre Ramondenc said the U.S. move could jeopardise the success of the rights issue.
"The news came as a major shock and amounts to nothing less than political hostage-taking by the U.S. administration, given the project's advanced stage," Ramondenc said.
On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending environmental and economic review of projects. He has repeatedly criticised wind energy as ugly, unreliable and expensive.
($1 = 6.3685 Danish crowns)
(Reporting by Stine Jacobsen; Editing by Terje Solsvik, Lincoln Feast, Bernadette Baum and Louise Heavens)
Stine Jacobsen
Sun 24 August 2025
COPENHAGEN (Reuters) -Orsted said on Monday it would continue with a plan to raise capital after the Trump administration ordered the offshore wind farm developer to stop construction on a near-completed project off Rhode Island, sending its shares down 17%.
The company, 50.1% owned by the Danish state, said earlier this month it would seek to shore up its finances through a $9.4 billion emergency rights issue.
"The planned rights issue had been sized to provide the required strengthening of Orsted's capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Orsted's U.S. offshore wind portfolio," it said in a statement.
The Trump administration's Bureau of Ocean Energy Management (BOEM) published its stop-work order late on Friday, forcing suspension of a project that was 80% complete with 45 out of 65 wind turbines installed.
The timing of the halt to Revolution Wind off Rhode Island was particularly damaging to Orsted, which announced earlier this month a plan to raise 60 billion Danish crowns ($9.42 billion) through a rights issue.
Orsted's shares, already down 30% since announcing its plan on August 11, fell as much as 17% in early trading on Monday.
"This is a huge hurdle with regards to raising capital," Sydbank analyst Jacob Pedersen told Reuters, adding he was "stunned."
AlphaValue analyst Pierre-Alexandre Ramondenc said the U.S. move could jeopardise the success of the rights issue.
"The news came as a major shock and amounts to nothing less than political hostage-taking by the U.S. administration, given the project's advanced stage," Ramondenc said.
On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending environmental and economic review of projects. He has repeatedly criticised wind energy as ugly, unreliable and expensive.
($1 = 6.3685 Danish crowns)
(Reporting by Stine Jacobsen; Editing by Terje Solsvik, Lincoln Feast, Bernadette Baum and Louise Heavens)
Ørsted Pushes Ahead With DKK 60 Billion Rights Issue Despite U.S. Setback
In a company announcement on August 25, Ørsted confirmed it will proceed with preparations for the rights issue and named BNP Paribas, Danske Bank, J.P. Morgan SE, and Morgan Stanley as Joint Global Coordinators, with BofA Securities and Goldman Sachs as Joint Bookrunners. The syndicate will underwrite roughly 49.9% of the offer not covered by Denmark’s state guarantee. An extraordinary general meeting is set for September 5 to finalize mechanics ahead of launch.
What prompted it
The Bureau of Ocean Energy Management (BOEM) issued a stop?work order for Revolution Wind, Ørsted’s 50/50 JV with Skyborn (BlackRock), after full federal permitting—including the Construction and Operations Plan—had been secured. Ørsted said it is seeking a swift resolution with agencies and, if needed, via legal channels, while targeting commercial operations in H2 2026. Project construction is 80% complete; Ørsted estimates about DKK 5 billion of remaining capex for its 50% stake and a run?rate EBITDA contribution near DKK 1 billion once online.
Why it matters
The stop?work order underscores rising regulatory uncertainty for U.S. offshore wind. Ørsted says the rights issue has been sized to reinforce its balance sheet and provide flexibility to execute its plan even under a tougher U.S. permitting backdrop.
Financial context and guidance
Ørsted reiterated 2025 guidance and medium?term targets despite the order. The company says 8.1 GW of offshore wind projects under construction should add DKK 11–12 billion of annual EBITDA by end?2027. For its two U.S. projects under construction—Revolution Wind (50% share) and Sunrise Wind (100% share)—Ørsted expects around DKK 4.5 billion in combined run?rate EBITDA. Total investment in the two projects on a 100% basis is approximately DKK 100 billion, with about DKK 45 billion remaining. Carrying value of Revolution Wind and Sunrise Wind as of June 30, 2025 was ~DKK 17 billion.
Sector and deal backdrop
After a wave of cost inflation, supply?chain pressure and permitting delays, European developers have been recalibrating U.S. ambitions. Ørsted’s planned equity raise—first signposted on Aug. 11—aims to strengthen capital structure and fund higher capex and non?recourse financing needs linked to Sunrise Wind and other projects. The Danish state has already committed to backstopping about half the issue, with banks underwriting the remainder, providing execution certainty that investors typically seek in volatile markets.
Project timeline and next steps
Ørsted continues construction at Revolution Wind and is working with stakeholders to secure a path to completion that would supply power to more than 350,000 homes, with COD still targeted for the second half of 2026. The company will “in due course” provide further details on the rights issue timetable following the Sept. 5 EGM.
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