The United States has stopped construction on a significant $1.5 billion offshore wind farm near Rhode Island, creating difficulties for the Danish energy company Ørsted as it works to stabilize its finances.
On Friday, the Bureau of Ocean Energy Management issued a stop-work order, citing the need to address national security concerns, but did not provide further information.
The project, called Revolution Wind, is being developed by Ørsted along with Skyborn Renewables, part of BlackRock’s Global Infrastructure Partners. It was reportedly 80% complete, with foundations in place and 45 out of 65 planned turbines already installed. The wind farm was scheduled to start operations next year, supplying power to around 350,000 homes in Rhode Island and Connecticut through 20-year contracts.
This marks the second time the Trump administration has intervened in a major offshore wind project. Earlier in April, the administration paused the $5 billion Empire Wind project, which was still in initial development stages.
Ørsted announced that it has received the necessary permits and is reviewing its options, which may include legal action. The company plans to inform the market about the financial impact of this order soon.
The potential delay or loss of revenue from Revolution Wind adds pressure on Ørsted, the largest offshore wind developer globally, which recently launched a $9.4 billion emergency rights issue due to challenges in securing partners for its other Sunrise Wind project off New York.
Revolution Wind is one of five offshore wind projects currently being constructed in the U.S. and is part of a total of 8.1 GW of wind projects that Ørsted is counting on to recover financially.
A spokesperson for the Global Wind Energy Council criticized the situation, stating, “This is the kind of stuff that happens in third-world countries; it’s happening in what should be a free market. It’s concerning.”
The decision to halt construction is yet another setback for Denmark’s involvement in the U.S., and President Trump has expressed interest in Greenland, suggesting he might seek control. Recently, Danish Foreign Minister Lars Løkke Rasmussen was in California to sign a partnership agreement with Governor Gavin Newsom, who has positioned himself as a critic of Trump’s administration.