Shares of Danish wind energy company Orsted A/S fell as much as 19% to record lows after the Trump administration ordered construction paused on the Revolution Wind offshore project off Rhode Island. The project was about 80% complete when the halt was issued last Friday.
The U.S. Bureau of Ocean Energy Management (BOEM) cited unresolved national security concerns and environmental protections as reasons for stopping construction. The order follows a presidential memorandum issued in January requiring a review of renewable projects on the Outer Continental Shelf.
Orsted said it is exploring regulatory options and potential legal action to resolve the issue. The company is also moving forward with a $9.4 billion share sale to strengthen its capital structure. The rights issue is the largest European energy-sector share sale in over a decade, with the Danish government planning to purchase about half of the shares.
The $5 billion Revolution Wind project had 45 of 65 turbines installed. Orsted has previously canceled two U.S. projects, faced heavy writedowns, and changed its top executives. The company’s credit rating has also been lowered to the lowest investment grade.
Analysts at Goldman Sachs noted that walking away from both U.S. projects could save Orsted around DKK 45 billion in remaining capital expenditure, though it would result in lost earnings and potential cancellation fees. Orsted may adjust its planned share sale depending on project outcomes.
The development has sparked concern among investors, with Orsted’s shares falling below their IPO price and creating uncertainty for U.S. offshore wind projects.
