Ørsted sues US government after Trump blocks offshore wind farm plans

Britain’s largest wind farm operator, Ørsted, is taking legal action against the US government after President Donald Trump halted its near-complete offshore wind project off the New England coast. The Danish-headquartered company filed its claim in a Washington court, seeking to compel US officials to allow completion of the $1.5 billion (£1.1 billion) wind farm near Rhode Island which was already over 80 percent finished.

The intervention comes as President Trump intensifies his campaign against the wind industry, having recently declared his intent to scale back approvals on renewables and branding wind farms both unsightly and costly. Work on Ørsted’s Revolution Wind project—set to provide electricity to hundreds of thousands of homes—came to a standstill when workers walked out following the presidential order. Trump’s rhetoric has not softened, as he continues to describe wind energy as a “green scam”, advocating instead for increased fossil fuel extraction across the US.

Ørsted, which provides around 7 percent of the UK’s electricity and runs major offshore wind farms such as Hornsea off the East Yorkshire coast, claims it invested billions based on “valid approvals” from US authorities. Shares in the company, majority owned by Denmark, fell sharply after the decision to halt the project, compounding concerns ahead of a crucial shareholder meeting. The firm now seeks to raise approximately £7 billion to bolster its finances—the figure is notable given the market capitalisation stands at £9.6 billion.

The US government cited “protection of national security interests” as the reason for issuing a stop-work order on Revolution Wind, only hours following a climate pact signed between Denmark’s foreign minister and the governor of California. Market observers have noted this move could also be interpreted as political pressure on Denmark in connection with ongoing disputes over Greenland.

Trump’s stance has had broader repercussions for the green energy sector. Two additional offshore wind projects, developed by Spain’s Iberdrola near New England, have been blocked, while the states of Rhode Island and Connecticut have initiated lawsuits against the administration. Ratings agency Fitch recently revised Ørsted’s debt outlook to “negative”, emphasising the deteriorating business environment for offshore wind in the US and suggesting that future developments such as the Sunrise Wind project near New York may also be at risk.

With market volatility and mounting legal challenges, Ørsted’s situation illustrates the complex intersection of political ambitions, international business interests and the future of large-scale renewable energy deployment.