The offshore wind industry is reeling after the Trump administration blocked a nearly complete Rhode Island wind farm. Danish energy giant Ørsted saw its stock tumble to an all-time low of $9.31 per share on Monday, after regulators halted construction on the over 700 megawatt Revolution Wind project.
The stop-work order, issued Friday by the Bureau of Ocean Energy Management, cited national security concerns and applies to the project located in federal waters about 15 miles off the Rhode Island coast, Utility Dive reported. The facility was about 80% complete, with all offshore foundations installed and 45 of 65 wind turbines already in place.
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The order marked another step in the Trump administration’s policy of dismantling offshore wind projects that were backed under former President Joe Biden. The administration has targeted offshore wind through multiple channels: stopping new lease sales, revoking permits and rolling back tax incentives. Instead, the Trump administration has favored power sources such as nuclear and coal that aren’t tied to weather conditions.
What does this mean for Ørsted?
The halt strikes at Ørsted’s troubled U.S. expansion. The company, which owns Revolution Wind in a 50/50 joint venture with Global Infrastructure Partners’ Skyborn Renewables, has already canceled two major American projects and written down billions in losses, Bloomberg reported.
Revolution Wind was set to supply energy to Rhode Island and Connecticut with a commercial operations date in the second half of 2026. The project was set to power more than 350,000 homes at 9.8 cents per kilowatt hour — cheaper than the average New England electricity rate, according to The Associated Press.
Ørsted is moving ahead with a $9.4 billion rights issue, saying the fundraising accounts for “the impact of this uncertainty on Ørsted’s U.S. offshore wind portfolio,” according to the company’s statements.
The company said it is “evaluating all options to resolve the matter expeditiously.”
What’s next for Revolution Wind?
The Revolution Wind halt follows the Empire Wind precedent. The administration issued a stop-work order on the 810 megawatt Empire Wind 1 project offshore New York in April, but later revoked that order after Gov. Kathy Hochul, D, negotiated with the administration.
Interior Secretary Doug Burgum said he was “encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity” for natural gas, according to The Associated Press.
About 1,000 union workers employed on the project now face job losses, says the AP. “This isn’t work that anybody can do,” Keith Brothers, business manager of the Connecticut Laborers’ District Council, told the AP about the specialized skills required.
The Democratic governors of Rhode Island and Connecticut said they’re working to reverse the federal decision.
U.S. Sen. Richard Blumenthal, D-Conn., called the halt “nuts, crazy, insane” during a Monday press conference, arguing that it was unlawful to stop a fully approved project.
