Orsted's U.S. Wind Farm Project Hit with Work Stop Order

Orsted's subsidiary Revolution Wind has received a work stop order from the US Department of the Interior's Bureau of Ocean Energy Management. The project, which is 80% complete, will stop offshore activities to ensure worker and environmental safety. Orsted is evaluating options to resolve the matter, including legal proceedings, to proceed with project construction towards commercial operation in H2 2026. Companies with exposure to wind energy include Eversource, NextEra Energy, GE Vernova, and Brookfield Renewable Partners.

Orsted's subsidiary Revolution Wind has received a work stop order from the US Department of the Interior's Bureau of Ocean Energy Management (BOEM) [1]. The project, which is 80% complete, will stop offshore activities to ensure worker and environmental safety. Orsted is evaluating options to resolve the matter, including legal proceedings, to proceed with project construction towards commercial operation in H2 2026.

The acting director of the Interior Department's Bureau of Ocean Energy Management, Matthew Giacona, issued a letter ordering Orsted to halt all ongoing activities on the Revolution Wind project located on the outer continental shelf [1]. This decision follows a review commissioned by the Trump administration, which suspended new federal wind leases shortly after the president's inauguration.

Orsted confirmed the stop-work order over the weekend and announced a $9.4 billion rights issue to strengthen its capital structure [1]. The rights issue will allow Orsted to execute its business plan despite the increased regulatory uncertainty in the U.S. offshore wind market.

The stop-work order raises the prospect of around $3 billion in impairments and cancellation charges, according to Baader analyst Pierre-Alexandre Ramondenc [1]. Companies with exposure to wind energy, such as Eversource, NextEra Energy, GE Vernova, and Brookfield Renewable Partners, may be affected by the increased regulatory uncertainty in the U.S. offshore wind sector.

Orsted is looking at its options to resolve the matter quickly and hopes to proceed with construction towards the second half of 2026 [1]. The company is also evaluating the financial implications and considering scenarios including legal proceedings.

References:
[1] https://www.morningstar.com/news/dow-jones/20250825979/orsted-shares-tumble-after-stop-work-order-on-revolution-wind-project-update