Orsted Sues to Restart Halted Offshore Wind Project

Industry Insights from Next Move Strategy Consulting

In a decisive legal move, Danish renewable energy company Orsted has filed a lawsuit against the Trump administration to revive construction on its offshore wind project, Revolution Wind, currently stalled off the coasts of Rhode Island and Connecticut.

A Halt in Construction Amid Rising Tensions

On August 22, the U.S. Interior Department ordered Orsted to halt work on the fully permitted project. Now 80% complete, Revolution Wind is designed to power more than 350,000 homes across both states. Orsted, together with its partner Skyborn Renewables, has already invested $5 billion in the development.

The company has petitioned the U.S. District Court for the District of Columbia to overturn the stop-work order, calling it “arbitrary, capricious, unlawful and issued in bad faith.”

Financial Stakes at Risk

The sudden halt threatens billions in future revenue, alongside $1 billion in potential breakaway costs if the project is cancelled. Following the order, Orsted’s shares hit a record low on August 25, underscoring the financial strain.

Justification vs. Challenge

The Bureau of Ocean Energy Management has defended the order on national security grounds, citing potential conflicts with other uses of U.S. territorial waters. Orsted disputes this rationale, pointing instead to President Donald Trump’s longstanding opposition to offshore wind.

“The President has apparent hostility towards offshore wind, including based on statements made on the campaign trail,” Orsted’s attorney argued in court filings.

A Decade of Reviews and Approvals

Revolution Wind has been subject to nearly a decade of environmental and safety assessments, costing more than $100 million. Federal agencies concluded through thousands of pages of documentation that the project is “environmentally sound, safe and consistent with federal law,” Orsted noted in its lawsuit.

Wider Industry Impact

The administration’s stance against renewables has escalated. Just two days before issuing the stop-work order, President Trump stated that no solar or wind projects would be approved under his leadership. On Friday, his administration further cancelled $679 million in funding for a dozen infrastructure projects supporting offshore wind.

Source: CNBC

Prepared by: Next Move Strategy Consulting