Shares in Ørsted (CPH: ORSTED) surged by 12% at opening in Copenhagen on Tuesday after a U.S. court blocked last month’s Trump Administration stop-work order on a nearly completed offshore wind project.
Ørsted and its joint venture partner Skyborn Renewables were progressing the construction of the Revolution Wind off the Rhode Island coast when the Trump Administration issued a stop-work order in August, throwing the project – which is 80% completed – and Ørsted’s operational and financial targets in doubt.
Ørsted and Skyborn Renewables sued to have the order lifted, and a U.S. District Court for the District of Columbia on Monday cleared Revolution Wind to restart activities while the underlying lawsuit challenging the stop-work order progresses.
“Revolution Wind will continue to seek to work collaboratively with the US Administration and other stakeholders toward a prompt resolution,” Ørsted said in a statement.
The Revolution Wind project is 80% complete, with all offshore foundations installed and 45 out of 65 wind turbines installed.
Revolution Wind is a 704-megawatt (MW) offshore wind farm located in federal waters 15 miles south of the Rhode Island coast, 32 miles southeast of the Connecticut coast, and 12 miles southwest of Martha’s Vineyard. 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 across the two states. This would make Revolution Wind the first multi-state offshore wind project in the United States.
Following the U.S. court’s decision, Revolution Wind will resume impacted construction work as soon as possible, said the Danish company, which is the world’s biggest offshore wind developer.
The U.S. judge’s decision is a big early court win for Ørsted, which has faced unfavorable U.S. Administration decisions and regulations since President Donald Trump took office.
Due to unfavorable U.S. regulatory environment and runaway costs globally, Ørsted is seeking to raise $9.4 billion (60 billion Danish crowns) from shareholders via a rights issue, to have sufficient capital to complete its projects under development.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
- Top Oil Traders Vie to Buy Chevron’s 50% in Singapore Refinery
- China Defies Sanctions With Sixth Russian Arctic LNG Cargo
- Italy Approves Saipem-Subsea 7 Energy Services Merger
