A chilling effect has spread through the wind industry, deepening the crisis at Ørsted after the Trump administration issued a stop-work order on a rival’s project. This move, which shocked the sector, solidified fears that no project is safe, contributing to the panic that saw Ørsted’s stock crash and forced a $9 billion cash call.
While Ørsted’s immediate problem is its inability to sell a stake in its own US project due to Trump’s policies, the action against Norwegian developer Equinor has shattered any remaining confidence. It demonstrated that even projects with secured approvals could be halted, making new US investments seem incredibly risky.
This political risk is layered on top of significant economic challenges, from post-pandemic supply chain disruptions to the high interest rates that have made new builds far more expensive. President Trump’s personal animosity towards wind farms has now become a systemic threat to the entire industry.
With its financing model broken and the market in fear, Ørsted has turned to its shareholders for a $9 billion lifeline, backed by the Danish state. The funds are aimed at providing “financial robustness” to navigate the “extraordinary situation” and complete its pipeline, including two major US wind farms.
