By Anders Lorenzen, in Copenhagen, Denmark
The potential for significant local job losses and the headache faced by the Danish wind energy giant Ørsted have intensified after the US government cancelled a major offshore wind power project that was approved by the Biden Administration and was nearing its completion.
Revolution Wind, an offshore wind project off the coast of New England that Ørsted is jointly developing in partnership with Global Infrastructure Partners and Skyborn Renewables, has been ordered to halt its operations by the US government’s Department of the Interior’s Bureau of Ocean Energy Management (BOEM).
BOEM has offered few details for its reasoning but cites workers’ and environmental protection concerns.
Revolution Wind has said it is complying with US government instructions, but has also hinted it could take legal action.
Revolution Wind halted as it achieved 80% completition
It added that the project is 80% complete, with all offshore and 45 out of the 65 wind turbines installed on the 807 megawatt (MW) energy project.
The companies stress that the project is fully permitted and have secured all the required federal and state permits, and on the 17th of November 2023, they received approval of their Construction and Operations Plan – a conclusion of the reviews that began nine years ago.
Additionally, Revolution Wind has obtained 20-year power purchase agreements to deliver 400 MW and 304 MW to Rhode Island and Connecticut, respectively – enough to power 350,000 homes across both states.
Ørsted is keen to resume operations immediately. It has engaged with the relevant permitting agencies for any necessary clarification or resolution and is exploring potential legal proceedings.
Joe Courtney: A devastating blow to the New England economy
Joe Courtney, a Congressman for Connecticut, has levelled intense criticism towards the Trump Administration for their interference in the project, stating:
“The Trump Administration’s order to halt the Revolution Wind project without any warning to the contractor, the states of Connecticut and Rhode Island, as well as the building trades unions who have been hard at work on the project for years, is a devastating hit to the economy of southern New England.”
He further explained that he have been in contact with Ørsted’s leadership, the state of Rhode Island, New London Mayor Michael Passero, and the building trades, who confirmed that this order, if executed, will terminate the jobs of approximately 200 workers in the trades, suppliers, and tug crews.
The congressman rubbished the claims by the Trump Administration that national security concerns have arisen, “is particularly galling given that BOEM and the US Coast Guard meticulously analysed ‘protection of national interests of the US’ as part of the record of decision years ago.”
Dan McKee: Trump is choosing delay and disruption
The two state governor has also strongly criticised the movement by the Trump Administration, with Dan McKee, the Governor of Rhode Island said that he and the Governor of Connecticut Ned Lamont will pursue every available option to reverse the the halting of the project, “At a time when we should be moving forward with solutions for energy, jobs and affordability, the Trump Administration is choosing delay and disruption”, McKee wrote on X.
Ørsted could wake up to a Monday morning headache
Ole Krohn, a business analysts at the Danish national broadcaster TV2 Danmark, suspects that what the US government have officially said is just a smokescreen, “You can’t help having the suspicion that this is sabotage coming directly from President Trump.” He points to the fact of Trump’s long-held opposition to wind turbines.
Ole Krohn: Trump unlikely to succeed
However, he believes that it would be very tricky for the Trump Administration to succeed in derailing this project, “In April, the Norwegian energy giant, Equinor was also told to halt an offshore US wind project by the US government, but a month later they were able to resume work.”
Regardless what happens to Revolution Wind, when stock markets opens on Monday, the share price of Ørsted is expected to take another after Danish part state-owned company experienced on the back of its announcements that it will be seeking a $9.4 billion rights issue where its share price dropped by 30%.
Anders Lorenzen is the founding Editor of A greener life, a greener world.
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