The consortium Revolution Wind, established by Ørsted, the Danish offshore wind power giant and includes its partners in the New England offshore wind project, has announced it has filed a lawsuit against the Trump Administration.
Trump halts offshore wind project – the context Revolution Wind’s lawsuit
This comes after the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM) announced last month that it is halting the Revolution Wind project. The remarkable intervention of the US government in the energy project was made as the project was nearing completion, had secured approval by the previous administration, and had passed all the obligatory checks.
Two lawsuits to get Revolution Wind back on track
At the time of the announcement, Ørsted said it would comply but that it would be seeking legal advice, which has now been mounted in a lawsuit by the company, which has found itself in a pretty fierce headwind, to say the least.
An additional lawsuit has been filed by the New England states of Rhode Island and Connecticut where the project is based and who would also be the recipients of the clean energy it delivers as well as the local temporary and permanent jobs it has created.
Filing the suit in the US District Court for the District of Columbia, Revolution Wind said that the order from the US government to immediately stop work on the project was issued without statutory authority and lacks any evidentiary basis and it is unlawful.
Explaining its lawsuit, the Attorney General of Connecticut William Tong said, “This kind of erratic and reckless governing is blatantly illegal, and we’re suing to stop it.”
“There are serious legal questions for abruptly cancelling an offshore wind project after it’s received federal approvals.”
Gilbert Michaud, Loyola University Chicago
Expert insight: Strong case for legal action
Gilbert Michaud, an Assistant Professor of Environmental Policy at the School of Environmental Sustainability at Loyola University Chicago believes the case for legal action is strong. He told A greener life, a greener world, “There are serious legal questions for abruptly cancelling an offshore wind project after it’s received federal approvals.”
Halting Revolution Wind could shake investor confidence in the US
He added that this could be an act of self-harm for the country, for future projects involving foreign investments in the clean energy sector, “This is shaking confidence. If the federal government can arbitrarily cancel multi-million- or billion-dollar projects, investors will be very hesitant to put their money into clean energy in the US.”
What is Revolution Wind?
The offshore wind farm is located 28km off the coast of Rhode Island and 60km off the coast of Connecticut.
Revolution Wind, which consists of 65 Siemens Gamesa 11 megawatt (MW) capacity wind turbines, is estimated to have a total generating capacity of 704 MW when completed. It is estimated that it will power 350,000 homes across the two states.
It is a joint venture between Ørsted, Global Infrastructure Partners and Skyborn Renewables.
Revolution Wind says that while they want to collaborate with the Trump Administration, time is tight. The longer the project is unable to be resumed, the higher the costs. It could be delayed by a year or risk cancellation, putting in jeopardy thousands of local jobs as well as the clean energy supply it will create.
Ørsted’s offshore wind challenges
The delay and headwind Orsted faces with Revolution Wind come at a pivotal time for the company. In a shareholder vote on Friday, September 5th, they will find out if their plan for a rights issue to raise 60 billion Danish crowns will be approved.
Orsted, which is 50% owned by the Danish state, is facing a serious financial headache, Revolution Wind being just one of its challenges. It has already had to pull out of several US offshore energy projects and cut its workforce.
Anders Lorenzen is the founding Editor of A greener life, a greener world.
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