News Summary
Orsted, a Danish wind farm developer, saw its shares drop 17% to a record low after the U.S. Bureau of Ocean Energy Management issued a stop-work order for the Revolution Wind Project off Rhode Island. With 45 out of 65 turbines installed, the project is 80% complete but faces significant hurdles in capital raising and compliance after the government’s intervention, risking the viability of the project and affecting local economies reliant on it.
Rhode Island – The shares of Orsted, a Danish wind farm developer, plummeted by 17% at the start of trading on Monday, hitting a record low according to LSEG data. This drastic decline follows a stop-work order issued by the U.S. Bureau of Ocean Energy Management for the Revolution Wind Project located off the coast of Rhode Island. The project, which is currently 80% complete with 45 out of 65 wind turbines installed, has faced a critical halt as Orsted navigates through the challenges of capital raising.
The halt to construction comes at a particularly sensitive time for Orsted, which recently announced plans for a 60 billion Danish kroner (approximately $9.4 billion) rights issue aimed at raising capital. This initiative is now under significant pressure due to the uncertainty created by the government’s order, as analysts express concerns over Orsted’s ability to continue its capital-raising efforts. The majority stakeholder, the Danish state, has expressed support for the rights issue proposal, yet doubts linger about the project’s viability.
Jacob Pedersen, an analyst at Sydbank, highlighted potential financial repercussions if the Revolution Wind Project is unable to supply electricity as planned. The project was designed to power around 350,000 homes, and a failure to operationalize could lead to substantial financial write-downs for Orsted.
The stop-work order was issued due to concerns related to national security interests and potential interference with U.S. waters, raising eyebrows among industry stakeholders. Despite having secured all necessary federal and state permits prior to the order, Orsted is now in compliance and evaluating its options to resume construction. Rhode Island officials have criticized this decision, stressing the project’s significance for the state’s energy and economic development goals.
In recent weeks, Rhode Island fishermen have raised concerns over the environmental impacts of offshore projects, prompting inquiries that coincided with the government’s decision to halt construction. This situation has prompted Orsted to consider legal action as a potential path forward to resolve the issue and continue construction.
The Revolution Wind Project is not the only offshore initiative impacted by government intervention this year. It marks the third offshore project halted by the Trump administration amidst broader ongoing issues with renewable energy projects, including rising costs due to supply chain disruptions and inflation. These challenges compound the difficulties already faced by the wind energy sector in the U.S., particularly in light of a climate for policy rollback by previous administrations.
The order to stop construction has raised alarms about the repercussions for local economies that depend on the project, with state officials citing the potential loss of jobs and the financial implications for surrounding communities. As Orsted assesses its next steps, including possible legal challenges, the implications of the halted project will be closely monitored by both the industry and local stakeholders.
The completion date for the Revolution Wind Project was initially projected for 2026. With the project now in limbo, the timeline for turning this vision into reality remains uncertain as stakeholders await clarity on how Orsted will proceed amidst evolving governmental policies and regulations.
Deeper Dive: News & Info About This Topic
- Reuters
- Wikipedia: Rhode Island
- GoLocal Prov
- Google Search: offshore wind projects
- The Hill
- Google Scholar: Trump administration wind energy policy
- Financial Times
- Encyclopedia Britannica: offshore wind energy
- Rhode Island Current
- Google News: Revolution Wind Project
Author: STAFF HERE PROVIDENCE WRITER
PROVIDENCE STAFF WRITER The PROVIDENCE STAFF WRITER represents the experienced team at HEREProvidence.com, your go-to source for actionable local news and information in Providence, Providence County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as WaterFire, Rhode Island International Film Festival, and Rhode Island Comic Con. Our coverage extends to key organizations like the Greater Providence Chamber of Commerce and Providence Warwick Convention & Visitors Bureau, plus leading businesses in finance and manufacturing that power the local economy such as Citizens Financial Group and Textron. As part of the broader HERE network, we provide comprehensive, credible insights into Rhode Island's dynamic landscape.
