Equinor Invests $9.39 Billion in Ørsted Amid US Offshore Wind Halt

Equinor, the Norwegian state-owned energy company, has announced a significant investment of nearly 1 billion dollars to support the capital increase of Ørsted A/S, a leading global offshore wind energy developer. This move comes at a time when the offshore wind energy industry is facing challenges due to the Trump administration's decision to halt a 6 billion dollar offshore wind project.

The decision by the Trump administration has had a significant impact on the green energy sector in the United States, causing disruptions and uncertainties. The halted project, located near Rhode Island, had an estimated investment of 1.5 billion dollars and was planned to be operational by the end of 2026, providing electricity to approximately 350,000 households. The project had already reached 80% completion, making the halt particularly disruptive.

Due to the Trump administration's stance against wind energy, Ørsted A/S faced financial challenges. The company announced plans to raise 600 billion Danish kroner (approximately 9.4 billion dollars) through a stock issuance to advance its projects. In response, Equinor announced its intention to subscribe to up to 60 billion Danish kroner (approximately 9.39 billion dollars) of Ørsted A/S's new shares, maintaining its 10% stake in the company.

Equinor, one of the few major oil companies committed to a green strategy, is the second-largest shareholder in Ørsted A/S. The company's support is seen as crucial for securing investor acceptance of Ørsted A/S's 600 billion Danish kroner rights issue. With the backing of the Danish government, which holds a 50.1% stake, Ørsted A/S has secured commitments from at least 60% of its shareholders for the rights issue.

Equinor's statement emphasized the strategic importance of its investment, highlighting the potential for industry consolidation and new business models in the face of challenges in the offshore wind sector. The company expressed confidence in Ørsted A/S's core business and the competitive advantages of offshore wind energy in future energy structures. This collaboration is expected to create value for shareholders of both companies and drive innovation in the renewable energy sector.