A dramatic policy shift in the United States has sent a chilling effect across the renewable energy industry, triggering a $9 billion crisis at Danish wind giant Ørsted. The company endured its worst-ever day on the stock market, with shares hitting rock bottom after it was forced to seek a massive capital injection to survive the new political landscape.
The turmoil was ignited by the Trump administration’s decision to freeze the offshore wind sector through a review of all leasing and permitting. This move has dismantled the financial framework that underpins the industry, where developers like Ørsted sell stakes in their projects to secure the necessary funding for construction and operations.
Rasmus Errboe, Ørsted’s chief executive, stressed the exceptional nature of the circumstances, blaming the “perfect storm” of US political opposition combined with ongoing supply chain disruptions. The emergency fundraising is a direct consequence of this hostile environment, reflecting deep uncertainty about the company’s US prospects.
The Danish government, as the majority owner, is supporting the financial rescue plan. Yet, the situation has exposed the vulnerability of the green energy transition to political whims, casting a pall over the future of the US market and threatening to reshape the global renewable energy map.