Ørsted, the Danish renewable energy giant, is resorting to legal channels to challenge the United States government’s recent halt on its nearly completed offshore wind project, Revolution Wind.
The states of Connecticut and Rhode Island, which were to be served by the wind farm, are also separately suing the Trump Administration over its “blatantly illegal” actions.
These moves marks a significant escalation in a series of confrontations that have cast a shadow over the future of offshore wind development in the US.
The multinational energy firm is seeking a court order to override the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM), which on 22 August ordered Ørsted North America to cease all construction activities related to Revolution Wind.
The project, valued at approximately $1.5bn (£1.1bn), was designed to supply renewable power to around 350,000 homes in the northeastern United States. Construction had been progressing since 2023, with completion anticipated in 2026. Ørsted has been collaborating with Skyborn Renewables, a subsidiary of BlackRock’s Global Infrastructure Partners, on the endeavour.
The US government’s directive, issued in a “Director’s Order”, cited concerns regarding national security and the prevention of interference with maritime activities within the U.S. exclusive economic zone.
The order effectively suspended work on the offshore farm, located 24km south of Rhode Island, where 45 of the planned 65 turbines had already been installed. The project’s capacity is set at 704MW, with power purchase agreements in place to supply 400MW to Rhode Island and 304MW to Connecticut.
Ørsted and Skyborn argue that the BOEM’s order was issued without proper legal authority and violated established agency procedures. In their lawsuit, they label the suspension as “invalid” and seek to have it overturned, asserting that the move was “arbitrary and capricious” after the company had invested heavily in approvals and development.
“The stop-work order was issued without statutory authority, lacks any evidentiary basis, and is unlawful,” the companies’ court filing in the US district court for the District of Columbia said.
The states of Connecticut and Rhode Island have also piled on, with Connecticut attorney general William Tong stating: “This kind of erratic and reckless governing is blatantly illegal, and we’re suing to stop it.”
Rhode Island senator and ranking member of the Senate Environment and Public Works committee Sheldon Whitehouse added: “If Trump’s plan is to raise families’ energy prices, cut American jobs, turbo charge climate change, and accelerate the Great Climate Insurance Crisis, he’s knocking it out of the park with his all-out attack on American offshore wind.
“Wind power is one of the fastest, safest, cheapest ways to meet rising electricity demand and cut energy prices. The only winners here are the corrupt fossil fuel donors who bankrolled Trump’s campaign.”
This legal confrontation arrives amid broader political tensions. The Trump administration, known for scepticism towards wind energy, had issued a series of orders aimed at curbing offshore wind projects nationwide, which the president dismissed as the “scam of the century”.
The basis for the administration’s halt order was a Memorandum signed by the president on his first day in office on his second term that called for the “temporary withdrawal of all areas on the outer continental shelf from offshore wind leasing and review of the federal government’s leasing and permitting practices for wind projects”.
It was one of 46 presidential actions authorised on day one of President Trump’s second term in office, many of which threatened dramatic changes to the civil engineering sector.
The impact on Ørsted’s financial stability is profound. The company, whose shares have plummeted by approximately 38% this year to around DKr199 (£23), had an extraordinary shareholder meeting in Copenhagen today, 5 September. At this meeting, a DKr60 billion (£7bn) rights issue bolster the company’s finances was authorised. This gave the Board of Directors approval to increase Ørsted A/S’s share capital.
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