Danish energy giant Ørsted, a leading global developer of offshore wind farms, is facing critically important financial headwinds after a series of project setbacks in the United States. The companyS stock experienced a dramatic plunge in August following a halt too construction on the Revolution Wind project, a move stemming from the management of Donald trump. This downturn highlights the vulnerability of renewable energy investments to shifting political priorities and broader economic pressures, forcing the company to reassess its expansion plans and seek new capital.
The Danish energy giant Ørsted, a global leader in offshore wind farm development, has experienced a dramatic downturn this year, fueled by setbacks in its ambitious U.S. projects. The company’s struggles highlight the challenges facing the renewable energy sector amid shifting political landscapes and economic headwinds.
In August, Ørsted’s stock plummeted by more than 40 percent after the administration of Donald Trump halted construction on the Revolution Wind project.
The stoppage came despite the project being 80 percent complete, with 45 of 65 wind turbines already installed.
Deteriorating Conditions
Revolution Wind had secured all necessary federal and state permits and had established 20-year power purchase agreements with the states of Rhode Island and Connecticut.
“I was sitting with my youngest son on Friday evening when our lawyer called to tell me what had happened. Everything changed,” said Ørsted CEO Rasmus Errboe, who assumed the role in February 2025.
A U.S. court later issued a preliminary injunction allowing work to resume, deeming the Trump administration’s move “arbitrary,” but the company has not fully recovered.
Ørsted has also faced mounting challenges, including higher debt servicing costs, financing difficulties for new projects, supply chain disruptions, and waning investor confidence in green energy.
High borrowing costs forced Ørsted to abandon two large-scale wind projects in the U.S. in 2023.
The company reported a significant loss in the third quarter, writing off 1.8 billion Danish kroner due to problems overseas. It also announced plans to cut a quarter of its 8,000-strong workforce by the end of 2027.
Just before Christmas, Ørsted faced another blow when the U.S. Department of the Interior paused five additional offshore wind projects off the East Coast.
Veterná elektráreň spoločnosti Ørsted
The pause was attributed to concerns about national security, specifically interference with radar systems caused by the movement of large turbine blades. Both Revolution Wind and Ørsted’s Sunrise Wind project were among those paused.
Projects from U.S. firm Dominion Energy and Danish company Equinor were also canceled.
While not unexpected, the decision represented another setback for the renewable energy sector under the Trump administration. Shares of Ørsted, Dominion Energy, and Equinor, which had begun to recover during the summer, experienced another decline.
Financial Difficulties
Ørsted’s management is working to raise capital through various means. In August, the company announced an emergency share issue for 60 billion Danish kroner (8 billion euros).
The shares were offered at half their current value, primarily to its largest shareholders: the Danish state, which holds a 50 percent stake in the company; Norwegian energy company Equinor (with a 10 percent stake); and a syndicate of financing banks.
Ørsted intends to use the proceeds to finance its Sunrise Wind project in New York. The company had initially considered selling the project, but uncertainty surrounding U.S. policy deterred potential investors.
At least in Europe, Ørsted has seen some success. In November, it sold a 50 percent stake in the world’s largest offshore wind farm, Hornsea 3 off the east coast of England, to investment firm Apollo for $6.5 billion.
The project is slated for completion in 2027 and is one of eight megaprojects Ørsted is building worldwide.
Hornsea 3 is part of the British government’s plans to decarbonize the electricity grid by 2030. Its planned capacity of 2.9 GW could potentially generate enough energy to power three million homes.
Ørsted CEO Rasmus Errboe stated that the company will complete its ongoing projects but will streamline plans for new developments in light of rising costs.
