Orsted's Offshore Wind Challenges Amplified by U.S. Project Halt
Orsted shares dropped significantly after the U.S. halted its Revolution Wind project, exacerbating challenges in the offshore wind market. This comes amid President Trump's opposition to renewable energy, with Orsted planning a $9.4 billion rights issue to bolster its financial stability amid market disruptions.
Orsted, the world's largest offshore wind farm developer, saw its shares fall 17% on Monday after the United States halted the Revolution Wind project in Rhode Island. This development is part of President Donald Trump's wider opposition to renewable energy investments.
In addition to this setback, Orsted is grappling with higher costs, rising interest rates, and supply chain disruptions, all contributing to significant delays and cancellations of projects not only in the U.S. but also globally. The company's stock value has dropped 87% since January 2021.
The U.S. Bureau of Ocean Energy Management issued a work-stop order for the nearly complete $1.5 billion project, which was set to start supplying electricity next year. Despite these challenges and strained U.S.-Denmark relations, Orsted remains committed to its American projects through a $9.4 billion emergency rights issue, which it announced earlier this month.
(With inputs from agencies.)
Google News