Shares in Orsted plunged 17% on Monday after the U.S. halted the Danish company's Revolution Wind project off Rhode Island amid President Donald Trump's pushback on renewable energy investments…
Shares in Orsted plunged 17% on Monday after the U.S. halted the Danish company's Revolution Wind project off Rhode Island amid President Donald Trump's pushback on renewable energy investments.
Orsted, the world's biggest offshore wind farm developer, has already faced mounting challenges, including rising costs, higher interest rates, and supply chain disruptions, leading to delays and cancellations in the U.S. and other markets. The company's market value has plummeted 87% since its January 2021 peak.
The U.S. Bureau of Ocean Energy Management (BOEM) issued a work-stop order late on Friday for the $1.5 billion Revolution Wind project, which was 80% complete, with 45 out of 65 turbines installed. The wind farm was expected to supply electricity to 350,000 homes in Rhode Island and Connecticut starting next year.
It was BOEM's second major suspension of an offshore wind project this year, following its halt of Norwegian energy firm Equinor's Empire Wind 1 project off New York in April. Trump has repeatedly criticised wind energy as costly and unreliable, suspending new offshore wind leases pending environmental and economic reviews.
Despite the setback, Orsted, which is 50.1% owned by the Danish state, reiterated plans for a $9.4 billion emergency rights issue announced earlier this
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