Orsted receives major Equinor backing as wind power faces political headwinds in US

The leading operator of wind farms in UK waters has secured crucial support from the Norwegian state-controlled energy group Equinor, as the offshore wind sector faces unprecedented political and financial challenges.

Equinor has committed nearly $939 million to participate fully in Orsted’s $9.4 billion rights issue, maintaining its 10 per cent stake first acquired for $2.3 billion less than a year ago. This injection comes after attempts to raise project funding and sell stakes in key US developments faltered due to hostile interventions from the Trump administration. The political pressure, including stop work orders affecting both Orsted’s Revolution Wind project in Rhode Island and Equinor’s Empire Wind project off New York, has spooked potential investors and forced Orsted to seek fresh capital through the rights issue.

The market responded positively to Equinor’s vote of confidence, with Orsted shares climbing by 2 per cent in Monday morning trading. Orsted, which began as Danish state oil and gas group Dong Energy, pivoted to offshore wind and now operates 12 wind farms in UK waters, generating seven per cent of Britain’s electricity. The company, 51 per cent owned by the Danish state, also manages global capacity of 10 gigawatts and has a further eight gigawatts under development. Current construction includes the world’s largest offshore wind farm, Hornsea Two, and the even larger Hornsea Three, although rising costs have put Hornsea Four on hold.

Equinor, formerly known as Statoil and 67 per cent Norwegian state owned, is also expanding its offshore wind portfolio, with 0.4 gigawatts of capacity installed and three gigawatts under development. Both energy groups have announced plans for increased industrial and strategic collaboration in response to these industry-wide pressures and the need for new business models as the sector consolidates.

An analyst from RBC Capital Markets noted that Equinor’s move both preserves its strategic position and may pave the way for a more integrated partnership with Orsted, potentially combining offshore wind portfolios. Equinor’s board representation at Orsted may allow the Norwegian firm to shape responses to the unpredictable political and financing environment confronting the offshore wind market in the United States.

The latest developments reflect a sector at a crossroads, where long-term shareholder commitments and cross-border cooperation will likely determine the future competitiveness and resilience of offshore wind in both the UK and beyond.