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The global offshore wind sector faced a significant setback as Danish energy giant Orsted witnessed a sharp decline in its share value following President Trump’s executive order to halt new turbine installations in US waters. The world’s largest offshore wind developer announced a staggering $1.7 billion impairment charge on its American operations, citing mounting costs and delays affecting its New York wind farm project.
The Danish state-backed company’s shares plummeted by 17% during trading, marking an 80% decrease from their 2021 peak. The latest financial blow stems from complications surrounding the Sunrise Wind project off New York, where foundation costs and construction delays have severely impacted project timelines.
President Trump, on his first day back in office, demonstrated his longstanding opposition to wind energy by issuing an executive order to suspend federal offshore wind leasing. His administration cited concerns over marine life protection and the preservation of the fishing industry, whilst criticising wind turbines as “expensive” and detrimental to landscapes.
The move represents a dramatic shift from previous US energy policies and has sent shockwaves through the renewable energy sector. Barclays’ head of European utilities research, Dominic Nash, highlighted increased risks for the US offshore wind industry, suggesting the possibility of complete stagnation in development over the medium term.
This latest setback follows Orsted’s previous $4 billion write-down in 2023 when it abandoned two US projects. The company, which has successfully developed numerous offshore wind farms globally, including the world’s largest installations in British waters, now faces unprecedented challenges in the American market amidst rising costs and regulatory uncertainty.
The implications of Trump’s decision extend beyond Orsted, potentially affecting the entire US renewable energy landscape and raising questions about the future of offshore wind development in American waters. The executive order’s impact on international renewable energy investments and climate change commitments remains to be seen.
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