Can Orsted’s Revolution Wind restart fuel a real recovery?

A U.S. federal judge overturned the Trump administration’s work-stop order on Orsted’s nearly completed Revolution Wind project, a $5B offshore wind farm off Rhode Island. The halt had cost the Danish company about $2M a day since August 22 and threatened $1B+ in breakaway costs if canceled.

With 45 of 65 turbines already installed and all foundations in place, the project is 80% complete. Shares jumped as much as 12% on the news, offering relief to a company already under strain from inflation, higher interest rates, and supply chain delays. Orsted recently asked investors for a $9.4B capital injection to stabilize finances, which will raise liquidity reserves to $22.9B, enough to complete ongoing projects.

The ruling clears a major hurdle, but Orsted’s longer-term recovery still depends on execution in a tough market.