Ørsted seeks injunction against US government over project freeze

Ørsted is seeking a court injunction against the Trump administration’s decision to suspend its work on a major wind farm project off the US northeast coast.

In the latest salvo between the US government and the offshore wind industry, the Danish company filed a legal challenge against the suspension in the US District Court for the District of Columbia on Thursday.

In a statement, Ørsted—the world’s largest offshore wind developer that is 50 percent owned by the Danish state—and its joint venture partner Skyborn Renewables, a unit of BlackRock’s Global Infrastructure Partners, said the US government’s order to suspend the lease on its Revolution Wind project was a violation of applicable law.

“Litigation is a necessary step to protect the rights of the project,” they said, warning that the project faced “substantial harm” if the suspension order remained in place.

Ørsted’s shares in Copenhagen rose more than 4 percent in morning trading on Friday.

The move comes 10 days after the Trump administration suspended leases on all large US offshore wind projects, citing national security concerns.

The offshore wind industry has come under pressure due to President Donald Trump’s long-standing animosity toward turbines and his focus on US fossil fuels. Ørsted has faced a series of political and economic challenges amid attacks from the administration against an industry that has been dominated by European companies rather than US players.

In October, Ørsted raised $9 billion from investors in a rights issue after Trump’s attempts to block a rival developer’s project spooked investors.

The US government then issued a stop-work order against the company’s $1.5 billion Revolution Wind project off the coast of Rhode Island, although Ørsted has persuaded a judge to lift the order.

In November, Ørsted agreed to sell half of the world’s largest offshore wind farm to Apollo in a $6.5 billion deal. Then on December 22, the company received orders from the US government to suspend “all ongoing activities on the outer continental shelf for the next 90 days.”

According to the company, the Revolution Wind project is now about 87 percent complete, with 58 out of its 65 wind turbines installed.

While Trump has made Ørsted’s planned offshore wind projects in the US far more difficult, its troubles predate his administration.

In 2023, the company had to walk away from two large projects in the US because of rising costs that have affected the entire industry.

In a statement on Ørsted’s legal challenge, White House spokesperson Taylor Rogers said: “For years, Americans have been forced to pay billions more for the least reliable source of energy. The Trump administration has paused the construction of all large-scale offshore wind projects because our number one priority is to put America First and protect the national security of the American people.”