In a stunning reversal, Ørsted’s promising US assets have been turned into major liabilities by the Trump administration’s policies, forcing the Danish company into a $9 billion emergency fundraiser. The news caused the company’s stock to collapse, falling by nearly a third to a record low.
The flip occurred when the Trump administration initiated a review of all offshore wind permitting, which immediately slashed the value of US projects. This made it impossible for Ørsted to execute its plan of selling a stake in its eastern seaboard project, turning a key part of its growth strategy into a financial black hole.
This hostile environment is compounded by tough economic conditions, including supply chain inflation and higher interest rates. The shock move to halt a rival’s approved project further signaled that the political risk in the US has become unmanageable for many in the industry.
The Danish government is backing the fundraising effort to help Ørsted manage these new liabilities. The company aims to achieve “financial robustness” to navigate the “extraordinary situation” and continue its global mission, despite the major setback in the US.