Rhode Island Challenges Trump Over Revolution Wind Halt Threatening $6 Billion Investment

Generated by AI AgentWord on the Street
Thursday, Sep 4, 2025 3:01 pm ET2min read
Aime RobotAime Summary

- Rhode Island and Connecticut sue Trump administration over halted Revolution Wind project, citing unlawful suspension risking $6B investment and clean energy jobs.

- Ørsted and Skyborn seek injunction to resume 80%-complete offshore wind construction, critical for powering 350,000 homes and reducing 11M metric tons of emissions.

- Legal challenge highlights political tensions over renewable energy, with states and companies accusing administration of politicized delays undermining climate goals and economic growth.

- Project suspension mirrors prior BOEM actions, raising concerns about regulatory instability as Ørsted seeks $9.41B funding to advance its 2026 New England energy supply target.

Rhode Island and Connecticut have initiated legal proceedings against the Trump administration in response to its decision to halt the Revolution Wind electricity project. The states allege that the suspension was unlawful, putting at risk jobs, clean energy prospects, and billions in investments aligned with the project. The Revolution Wind project, located off the northeast coast of the US, is a collaboration between Danish energy company Ørsted and German wind developer Skyborn Renewables. Both companies have secured all necessary permits and completed approximately 80% of the construction.

Connecticut Attorney General William Tong expressed strong opposition, asserting the halt exemplifies erratic governance that contravenes legal standards. Rhode Island Senator Sheldon Whitehouse echoed these sentiments, highlighting the administration's move as detrimental to energy prices, employment, and efforts to combat climate change.

In Washington D.C., Ørsted and Skyborn filed a separate lawsuit arguing the stop-work directive was issued without legal authority or any evidentiary basis, labeling the action as unlawful. They plan to seek a preliminary injunction to resume construction, crucial for delivering electricity to around 350,000 homes, with plans to supply 2.5% of New England's electricity by 2026.

The impact on Rhode Island's emissions is also significant, with the project anticipated to reduce the state's pollution by 11 million metric tons as it strives for zero emissions by 2050. Rhode Island's Attorney General Peter F. Neronha emphasized the importance of the project not only for job creation but also for energy reliability and cost savings. The stoppage reportedly angered union members, many of whom supported President Trump, viewing this suspension as politically motivated.

The Bureau of Ocean and Energy Management (BOEM), under the Trump administration, issued the order on August 22 citing undefined "concerns," causing financial and operational strain on Ørsted and Skyborn, which have already invested about $5 billion. If the halt persists, an additional $1 billion could be lost, with potential delays due to scarce offshore wind construction vessels.

This legal action underscores mounting tension between the Trump administration and renewable energy advocates, as the former has previously derided wind energy as costly and unsightly while promoting fossil fuels. The suspension of Revolution Wind, if not reversed, poses a potential year-long delay or cancellation risk, stressing the importance of vessel availability for ongoing construction.

Such challenges are not unprecedented, with BOEM having previously halted a neighboring

project, later resumed following diplomatic interventions. Revolution Wind's progress remains critical, especially given Ørsted's recent rights issue announcement seeking $9.41 billion investment required for the project.

The battle against the administration's stance on offshore wind aligns with broader resistance from Democratic senators and state officials, who insist that national security concerns alleged by the administration lack substantive backing. Statements from defense and environmental experts contest the rationale presented, particularly around purported threats to radar detection from wind turbines.

The Revolution Wind project remains a pivotal component in efforts to transition Rhode Island and Connecticut towards sustainable energy, promising competitive pricing over the next two decades. Stakeholders emphasize the urgency of resolving this legal impasse to avert substantial economic and environmental setbacks.

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