U.S. Blocks Offshore Wind Farm Development Amid Trump's Trade Policy

The Trump administration is working to halt the development of an offshore wind project near Maryland, despite a joint venture between Orsted and Global Infrastructure Partner's Skyborn Renewables receiving federal permits. US Wind, the owner of the project, remains confident in the legality of their permits. Companies with exposure to wind energy include Eversource, NextEra Energy, GE Vernova, and Brookfield Renewable Partners.

The Trump administration has initiated a move to stop the development of an offshore wind project near Maryland, despite the project receiving federal permits. The Maryland Offshore Wind Project, owned by US Wind, is facing a potential halt in its construction and operations plan, according to a recent filing in the U.S. District Court in Delaware [1].

The Interior Department, under the Trump administration, has requested the court to stay a lawsuit challenging the approval of the Maryland Offshore Wind Project. The agency plans to vacate the approval by September 12, 2025 [1]. This move comes amidst broader regulatory challenges in the offshore wind sector, including the suspension of work on an offshore wind farm off Rhode Island’s coast by Denmark’s Orsted A/S, which was 80% complete [2].

US Wind, which is owned by funds managed by Apollo Global Management and Renexia SpA, a subsidiary of Italy's Toto Holding SpA, remains confident in the legal soundness of its permits. The project was approved by the Biden administration in September 2024 and was expected to produce enough power for 718,000 homes [1].

The regulatory turmoil in the offshore wind sector has significant implications for companies like Eversource, NextEra Energy, GE Vernova, and Brookfield Renewable Partners. Eversource, for instance, has experienced regulatory hurdles with its Revolution Wind project, which was 80% complete before a directive from the US Department of the Interior's Bureau of Ocean Energy Management halted work [3]. The Trump administration has cited national security concerns and the need to address potential interference with the exclusive economic zone, high seas, and territorial seas [3].

The financial health of companies involved in offshore wind development is under scrutiny. Eversource, for example, has shown steady revenue growth but declining earnings growth, and its interest coverage ratio has been low, indicating potential financial strain [3]. The regulatory uncertainty is forcing these companies to evaluate legal proceedings and consider various scenarios to resolve the matter expeditiously.

As the industry navigates these challenges, investors and financial professionals should closely monitor the impact on companies like Eversource and their ability to adapt to the changing regulatory landscape. Clear and consistent policies that support renewable energy development are crucial to mitigate the financial vulnerabilities of these companies.

References:
[1] https://www.reuters.com/business/energy/trump-administration-plans-cancel-approval-maryland-offshore-wind-project-2025-08-25/
[2] https://www.investing.com/news/stock-market-news/trump-administration-moves-to-halt-maryland-offshore-wind-project--bloomberg-93CH-4209579
[3] https://www.ainvest.com/news/eversource-faces-regulatory-challenges-offshore-wind-project-affects-renewable-energy-investment-2508/