Revolution Wind Moves to Block U.S. Federal Lease Suspension in Court
Revolution Wind LLC, a joint venture between Global Infrastructure Partners’ Skyborn Renewables and Denmark’s Ørsted, has moved to formally challenge a lease suspension order issued by the U.S. Bureau of Ocean Energy Management (BOEM) on December 22, 2025. The company filed a supplemental complaint in the U.S. District Court for the District of Columbia and plans to seek a preliminary injunction to block enforcement of the order.
The developer argues that the suspension violates applicable law and poses immediate and substantial harm to a project that is already 87% complete and was expected to begin generating electricity as early as January 2026.
Revolution Wind is among the most advanced offshore wind projects in the United States. All offshore foundations are installed, 58 of 65 turbines are already in place, export cable installation is complete, and both offshore substations have been installed. The project has secured all required federal and state permits, most of them finalized in 2023 after a review process spanning more than nine years.
At the time of the suspension, the project was on the cusp of initial power generation and remains on track, absent further delays, to deliver electricity in 2026.
Under 20-year power purchase agreements with utilities in Connecticut and Rhode Island, Revolution Wind is expected to supply electricity to more than 350,000 homes. Regional grid operator ISO New England has warned that halting the project could increase electricity costs and undermine reliability at a time of rising demand, particularly from data centers and AI-driven load growth.
According to the company, the project underwent extensive interagency review, including consultations with the U.S. Department of Defense’s Military Aviation and Installation Assurance Siting Clearinghouse. These discussions resulted in a formal mitigation agreement with the Department of the Air Force addressing national security and operational concerns.
In addition to defense-related reviews, the project received approvals from the U.S. Coast Guard, U.S. Army Corps of Engineers, National Marine Fisheries Service, and other federal bodies. Revolution Wind says it has invested and committed billions of dollars in reliance on these approvals.
The December lease suspension follows an earlier stop-work order issued in August 2025, which the company has also contested. Revolution Wind says continued administrative intervention at this stage introduces legal uncertainty into projects that have already cleared the federal permitting process.
The legal challenge highlights growing tensions in the U.S. offshore wind sector, where developers face rising costs, supply chain pressures, and increasing regulatory risk. While offshore wind remains central to Northeast decarbonization and grid reliability plans, recent federal actions have raised concerns among investors about policy consistency once projects move into construction.
The dispute also has labor and industrial implications. Revolution Wind has supported thousands of jobs across construction, manufacturing, shipbuilding, and operations, including more than 1,000 union positions that have already logged roughly 2 million work hours. The project is part of Ørsted’s broader U.S. investment footprint, which spans grid upgrades, port infrastructure, and domestic manufacturing across more than 40 states.
Ørsted confirmed that Sunrise Wind LLC, a separate wholly owned subsidiary that also received a lease suspension order on December 22, is evaluating its options, including potential legal action and continued engagement with federal agencies.
For Ørsted and its partners, the outcome of the Revolution Wind case could set an important precedent for how far federal authorities can intervene in late-stage offshore wind projects that have already secured full permitting and financing.
By Charles Kennedy for Oilprice.com
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