Stormy Seas for Orsted: Trump's Order Halts Offshore Wind Project

The Trump administration has halted Orsted's offshore wind project near Rhode Island, citing national security concerns. With the project 80% complete and suspended, Orsted faces financial strain and considers legal action. The halt reflects broader challenges for the wind industry amid rising costs and regulatory hurdles.

The Trump administration has unexpectedly ordered a halt to construction on Orsted's offshore wind project near Rhode Island, marking another setback for U.S. renewable energy efforts. The decision freezes a nearly-completed project and compounds financial challenges for the company seeking to raise $9.4 billion through an emergency rights issue.

The Bureau of Ocean Energy Management's stop-work order, citing national security concerns, is the second such action affecting offshore wind development this year. Orsted is now exploring legal avenues and assessing financial impacts, while the industry raises alarms over potential job losses and stalled investments.

This stoppage comes amid a tense backdrop of regulatory and financial pressures within the global wind sector. Orsted's difficulties are compounded by partner withdrawals from another project following previous halts ordered by the Trump administration. Despite the hurdles, Orsted remains committed to navigating these challenges.

(With inputs from agencies.)