The US government has ordered Ørsted, a Danish energy company, to halt activities on its offshore wind project, Revolution Wind, due to national security concerns.
Revolution Wind, a joint venture with Skyborn Renewables, received this directive from the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) on 22 August.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
In a letter from BOEM acting Director Matthew Giacona, it was stated: “BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas.”
Following the order, Ørsted has complied by stopping offshore activities for Revolution Wind and is ensuring the safety of its workers and the environment.
The project, located offshore Rhode Island, began construction after receiving final federal approval last year, is 80% complete with 45 out of 65 wind turbines installed.
“Ørsted is evaluating all options to resolve the matter expeditiously,” the energy company said in a statement.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataIt includes engaging with relevant permitting agencies for clarification or resolution and possibly pursuing legal actions to continue the project’s construction towards its commercial operation date in the second half of 2026.
Revolution Wind has secured all necessary federal and state permits, including its Construction and Operations Plan approval on 17 November 2023, following reviews that started over nine years ago.
The project has 20-year power purchase agreements to supply 400 megawatts (MW) to Rhode Island and 304MW to Connecticut, powering over 350,000 homes.
Ørsted is also assessing the financial implications of the development, considering scenarios including legal proceedings.
Following the US action, Ørsted said it will continue with its planned rights issue preparation, backed by its majority shareholder, the Danish state.
The DKr60bn ($9.4bn) planned rights issue, announced earlier this month, aims to bolster Ørsted’s capital structure and provide financial flexibility, addressing increased CAPEX requirements for completing Sunrise Wind without partial divestment or non-recourse financing.
Announcing the plans to proceed with the rights issue, Ørsted said: “The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US.”
