Orsted shares rise 12% after US Judge lifts Trump's ban on Revolution Wind project

Orsted shares rose up to 12% on early Tuesday trade after a U.S. Federal Judge ruled it could resume work on the nearly completed Revolution Wind project that was halted last month by U.S. president Donald Trump's government. Trump has been repeatedly critical of wind farms, calling them ugly, unreliable, and expensive. He has urged federal agencies to curtail the development of wind power. Orsted however has a major win. Orsted, an offshore wind energy developer, has lost $2 million per day since August 22 when the U.S. Bureau of Ocean Energy Management issued its work-stopping order citing unspecified concerns about national security.

Orsted shares rose 7% to 118.6 Danish Crowns at 0731 GMT.

At the time of the project's completion, the Revolution Wind project located 15 miles off of the coast of Rhode Island was 80% completed, with 45 out of 65 turbines already installed.

According to court documents filed by the two companies in the United States, the Danish company and its joint venture partner Skyborn Renewables had already committed or spent about $5 billion for the project. If it was cancelled, the breakaway costs would be over $1 billion. Orsted had already been struggling to avoid an potentially crippling downgrade in its credit rating even before the order. Orsted, squeezed by inflation, rising interest rates, and delays in the supply chain, asked its shareholders for $9.4 billion in August. After the rights issue, Orsted will have a liquid reserve of 145 billion crowns (about $22.9 billion). Finance chief TrondWestlie believes that this is enough to finish existing projects.

(source: Reuters)