Orsted's Offshore Wind Venture Faces Turbulence Amid U.S. Setback

Shares in Orsted dropped 17% after the U.S. halted its Revolution Wind project, amidst Trump's resistance to renewable energy. Orsted's U.S. projects face delays due to rising costs and supply chain issues. The Danish state-backed firm remains committed, planning a $9.4 billion rights issue to stabilize finances.

Shares of Orsted plummeted 17% on Monday after the United States put a halt on the company's Revolution Wind project off Rhode Island. This move is part of President Donald Trump's broader push against renewable energy investments.

Orsted, a leader in offshore wind farm development, is confronting rising challenges, including cost increases, higher interest rates, and supply chain issues, causing project delays and cancellations in the U.S. and beyond. The company's market valuation has fallen a dramatic 87% since peaking in January 2021.

The U.S. Bureau of Ocean Energy Management issued a stop-work order for the nearly completed $1.5 billion project expected to power 350,000 homes in Rhode Island and Connecticut. Despite the setback, Orsted remains committed to its U.S. ambitions, signaling the unwavering dedication with a $9.4 billion rights issue to reinforce its finances.

(With inputs from agencies.)