Orsted's Triumph: A Legal Victory Revives Revolution Wind Project

In a significant legal victory, shares in Orsted surged by up to 12% early Tuesday after a U.S. federal judge allowed the company to resume the nearly complete Revolution Wind project. The project was halted by directives from President Trump's administration, which had expressed concerns about wind farms, deeming them unappealing and costly.

Located 15 miles off Rhode Island's coast, the Revolution Wind project was 80% complete, with major investments already made by Orsted and its partner, Skyborn Renewables. The companies have spent or pledged around $5 billion on the project, according to court filings, and faced more than $1 billion in potential breakaway costs if it was cancelled.

Orsted's financial health had been under pressure due to inflation and supply chain issues, prompting a request for a $9.4 billion shareholder injection in August. The subsequent rights issue is expected to provide Orsted with sufficient liquidity to complete ongoing ventures, securing its position as a leading offshore wind power developer.

(With inputs from agencies.)