The US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) has issued 90-day lease suspension orders to Revolution Wind and Sunrise Wind, two flagship offshore wind projects developed by Ørsted off the US East Coast.
The orders, received on December 22, instruct the projects to suspend all ongoing activities on the outer continental shelf for an initial 90-day period, with BOEM retaining the right to extend the suspension. Ørsted said both project companies are complying with the directive and are implementing shutdown measures designed to protect worker safety and the environment.
Revolution Wind is a 50/50 joint venture between Ørsted and Global Infrastructure Partners’ Skyborn Renewables, while Sunrise Wind is fully owned by Ørsted. Both projects are in advanced stages of construction and were expected to begin delivering power in 2026, with Revolution Wind scheduled to start generating electricity as early as January.
Ørsted said it is evaluating “all options” to resolve the matter, including engagement with BOEM and other permitting agencies, as well as the potential pursuit of legal remedies. The company emphasized that both projects are fully permitted at the federal and state levels, following multi-year environmental and regulatory reviews.
As part of the original permitting process, Ørsted noted that the projects consulted extensively with the US Department of Defense’s Military Aviation and Installation Assurance Siting Clearinghouse to assess and mitigate any potential impacts on national security or defense operations.
The suspension affects projects that are central to state-level clean energy plans in the Northeast. Revolution Wind holds 20-year power purchase agreements to supply 400 megawatts of electricity to Rhode Island and 304 megawatts to Connecticut. Sunrise Wind has a 25-year contract to deliver 924 megawatts to New York. Combined, the two projects are expected to power roughly one million homes across the three states.
The move comes at a sensitive moment for the US offshore wind sector, which has faced rising costs, supply chain pressures, and increasing political scrutiny over the past two years. While the Biden administration has positioned offshore wind as a cornerstone of its clean energy strategy, recent project delays, contract renegotiations, and regulatory interventions have raised concerns among developers and investors about policy stability.
Ørsted highlighted the broader economic footprint of its US offshore wind portfolio, which includes investments in grid upgrades, port infrastructure, domestic shipbuilding, and manufacturing across more than 40 states. The company said Revolution Wind and Sunrise Wind currently employ hundreds of local union workers and that its US offshore wind projects have generated approximately four million labor union hours to date.
Whether the suspension proves to be a short-term regulatory pause or a longer disruption will be closely watched by the offshore wind industry, as well as by state governments counting on large-scale renewable projects to meet decarbonization targets.
By Charles Kennedy for Oilprice.com
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