Shares in Danish company \u00d8rsted were down by around 16% in Copenhagen on Monday afternoon.<\/p>\n
The fall followed an order from the US Bureau of Ocean Energy Management (BOEM), issued to the firm late on Friday, to halt all works on a nearly completed project near the coast of Rhode Island, until further notice.<\/p>\n
The delay, potentially increasing the costs of the investment, could result in major losses for the company, which had already been on the hunt for funding.<\/p>\n
To pay for the Revolution Wind project, \u00d8rsted announced on 11 August that it was going to carry out a rights issue, meaning it would sell additional shares at a discounted price to shareholders, to raise DKK 60bn (\u20ac8.04bn).<\/p>\n
The uncertainty around the project is now fuelling investor concerns, although share price losses moderated slightly on Monday afternoon. The company said that its financial guidance for 2025 remains unchanged.<\/p>\n
\u201cWe\u2019re complying with the order and will work with our US partners and stakeholders to identify a solution as quickly as possible for completing the project,\u201d Rasmus Errboe, CEO of \u00d8rsted, said in a statement. He added that \u201cRevolution Wind is fully permitted and 80% complete\u201d.<\/p>\n
Related<\/p>\n
The New York project has 20-year power purchase agreements to deliver 400 MW of electricity to Rhode Island and 304 MW to Connecticut, enough to power over 350,000 homes across both states to meet their growing energy demand.<\/p>\n
According to the Bureau of Ocean Energy Management\u2019s order, the works are halted until further notice, which will give the authorities time to address concerns around the wind farms. These include questions \u201crelated to the protection of national security interests of the US and the prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas\u201d.<\/p>\n
The order comes just days after President Donald Trump said last Wednesday that the US is not going to approve wind or solar power projects.<\/p>\n
Last month, Washington also tightened federal permission rules for such projects, handing over the final say to Doug Burgum, US Secretary of the Interior. This drew criticism from the renewables industry that projects are chosen for political motives.<\/p>\n
However, Revolution Wind secured \u201call required federal and state permits, including its Construction and Operations Plan approval letter on 17 November 2023, following reviews that began more than nine years ago\u201d, the company said in a statement.<\/p>\n
\u201c\u00d8rsted is evaluating the potential financial implications of this development, considering a range of scenarios, including legal proceedings.\u201d<\/p>\n
The investment to proceed with the project amounts to DKK 5 billion (\u20ac670 million). Construction was earmarked to be finished by the second half of 2026.<\/p>\n
The world\u2019s biggest offshore wind developer, which counts the Danish state as its largest shareholder, is focusing on boosting its financial health to support its investment and business development programs.<\/p>\n
After the announcement from BOEM on Friday, the company\u2019s statement left lingering concerns about the planned rights issue. By Monday morning, \u00d8rsted announced that it was still committed to selling the shares to strengthen the company’s capital structure. It added that it had appointed a consortium of banks to do so.<\/p>\n
The fresh funding would also partially finance the biggest project in New York state’s history, Sunrise Wind. However, \u00d8rsted emphasised the “increased regulatory uncertainty for offshore wind in the US” in its latest statement.<\/p>\n
\u00d8rsted will hold an extraordinary general meeting on 5 September 2025 and will release further details concerning the launch of the rights issue.<\/p>\n","protected":false},"excerpt":{"rendered":"Shares in Danish company \u00d8rsted were down by around 16% in Copenhagen on Monday afternoon. The fall followed…\n","protected":false},"author":2,"featured_media":39178,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[285],"tags":[5204,287,2006,4962,11052],"class_list":["post-39177","post","type-post","status-publish","format-standard","has-post-thumbnail","category-orsted","tag-boem","tag-orsted","tag-revolution-wind","tag-rhode-island","tag-rights-issue"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@dk\/116220545295835734","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/39177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/comments?post=39177"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/posts\/39177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media\/39178"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/media?parent=39177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/categories?post=39177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/dk\/wp-json\/wp\/v2\/tags?post=39177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}