Offshore wind developer Ørsted and joint-venture partner Skyborn Renewables filed suit in Washington, D.C., on Thursday, challenging the Interior Department’s stop-work order that froze construction on the 704-MW Revolution Wind project serving Rhode Island and Connecticut, Reuters reported. The complaint argues the order is unlawful and unsupported by evidence after months of installation work and long-standing federal and state approvals.
Revolution Wind is about 80% complete, with all offshore foundations set and 45 of 65 turbines installed, according to the filing. The developers say they have spent roughly $5 billion and face as much as $1 billion in additional costs if the shutdown persists, including risk of losing scarce construction vessels and a delay of at least a year. The project has 20-year offtake deals, including 400 MW to Rhode Island and 304 MW to Connecticut, which is enough to supply more than 350,000 homes.
The stop-work order, issued last month by the Bureau of Ocean Energy Management, cited national security concerns. Interior declined to comment on the lawsuit. The companies say the order arrived despite earlier federal clearances and would jeopardize schedules and financing for a project slated to start deliveries next year.
The legal move follows Ørsted’s plan to raise about 60 billion Danish crowns (~$9.4 billion) via a rights issue to fortify its balance sheet after U.S. setbacks. On Monday, Norwegian major Equinor said it would participate, signaling continued backing from a key shareholder.
Investors had already reacted to the halt, with Ørsted shares tumbling after BOEM’s order as the company paused offshore work. Shares in Ørsted are trading down nearly 32% year-to-date. Revolution Wind, a 50/50 Ørsted-Skyborn venture, is the first U.S. offshore wind build halted this far into construction. If installation vessels are redeployed, the developers warn the schedule could slip beyond a year, with the project at risk of cancellation.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- Russian Oil Giants Buckle Under Low Prices and Sanctions
- Europe Triggers Iran Sanctions Snapback
- India’s Defiance Could Reshape the Oil Chessboard
