A state of political paralysis in the US offshore wind market has crippled Danish giant Ørsted, causing its stock to plummet and forcing a $9 billion emergency fundraising effort. The paralysis is a direct result of the Trump administration’s hostile policies toward renewable energy.
The administration has frozen all progress by launching a review of wind project permitting and leasing, bringing the industry to an abrupt halt. This has made it impossible for Ørsted to use its standard financing model of selling project shares, leaving the company in a deep financial hole.
Describing the circumstances as “extraordinary,” CEO Rasmus Errboe attributed the crisis to the potent combination of US political opposition and persistent supply chain bottlenecks. The need for a massive capital raise is a stark indicator of the damage done.
Despite backing from the Danish government, the event has sent a chill through the global investment community. The paralysis in the US market now threatens to reshape the renewable energy landscape and stall the international transition to clean power.