Trump administration faces lawsuit by Denmark's Ørsted over halted wind farm project
In a significant turn of events, Danish wind farm constructor Ørsted has taken legal action against the US Government, accusing the Trump administration of unlawfully blocking a $1.5 billion wind farm project in the Atlantic. The lawsuit, lodged in the US District Court for the District of Columbia, centers around the Revolution Wind farm, a joint venture with Skyborn Renewables that is 80% complete.
The project, designed to power over 350,000 homes and scheduled to begin operations in 2026, had already cleared evaluations by multiple agencies, including the Pentagon, US Coast Guard, and National Marine Fisheries Service. However, on August 22, the Bureau of Ocean Energy Management (BOEM), under the US Department of the Interior, issued a stop-work order.
This move against the wind farm is part of a broader campaign against offshore wind, reflecting President Trump's long-standing opposition to the industry. On his first day in office in January this year, Trump ordered a halt to new offshore wind leasing and initiated reviews of existing permits, targeting projects including Revolution Wind, New England Wind, and SouthCoast Wind.
The President has repeatedly criticized wind turbines, describing them as "bird graveyards", "ugly monsters", and "very expensive". This criticism has been a recurring theme in his presidency, with the Trump administration's move against the wind farm being a notable example.
The financial implications of the stop-work order have been severe for Ørsted. The company, 50.1 per cent owned by the Danish State, is seeking a 60 billion Danish krone (€8 billion) rights issue to bolster its balance sheet. The action has exacerbated the financial strain that Ørsted has been experiencing, with its shares dropping 38 per cent so far this year. The company's share price has plummeted, dropping 86 per cent since its peak in 2021 and hitting an all-time low in August 2025.
The legal action comes amid a challenging period for the wind energy sector as a whole. Supply-chain costs, higher interest rates, volatile prices, and increasing doubts on the ability of the grid to integrate intermittent renewable power have posed significant challenges. These issues were highlighted by the mega blackout in Spain and Portugal earlier this year.
The Trump administration's move against the wind farm in the Atlantic is not the only point of contention between the US and Denmark. The two nations have traded barbs over the sovereignty of Greenland, with the President of the United States who prevented the construction of the Revolution Wind offshore wind farm in 2025 being Donald Trump, who began his second presidency on January 20, 2025.
As the legal battle unfolds, the future of the Revolution Wind farm and the broader offshore wind industry in the US remains uncertain. However, Ørsted's determination to challenge the stop-work order underscores the company's commitment to advancing renewable energy and its belief in the project's potential to provide clean power to hundreds of thousands of homes.
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