Orsted's Offshore Wind Project Halted Amid U.S. Political Tensions

Orsted's Revolution Wind project faces a halt in the U.S., impacting the offshore wind market as President Trump curbs renewable energy investments. Despite setbacks, Orsted plans a $9.4 billion rights issue to fortify its business. Analysts suggest diplomatic solutions may resolve the suspension.

Orsted's shares plummeted 17% as the U.S. halted its Revolution Wind project off Rhode Island, raising concerns over the country's offshore wind market future. President Donald Trump has been actively reducing investments in renewable energy, citing issues like project unreliability and rising costs.

The U.S. Bureau of Ocean Energy Management (BOEM) ordered a cessation on the $1.5 billion Orsted project. With 80% completion and 45 out of 65 turbines installed, the project aimed to power 350,000 homes by next year. The suspension follows another major halt on Equinor's Empire Wind 1 project in April.

Still determined, Orsted announced a $9.4 billion emergency rights issue to strengthen its financial standing amid U.S. market challenges. The company's shares have dropped significantly since announcing the rights issue, yet analysts suggest that achieving a resolution similar to Equinor's case could be possible.

(With inputs from agencies.)