Ørsted shares jump after US court decision unblocks windmill project

Ørsted shares jump after US court decision unblocks windmill project

Ørsted shares jump after US court decision unblocks windmill project

A federal judge ruled on Monday that a nearly complete offshore wind project halted by the administration can resume, dealing President Donald Trump a setback in his ongoing effort to restrict the fledgling industry.

Work on the nearly completed Revolution Wind project for Rhode Island and Connecticut has been paused since 22 August, when the Bureau of Ocean Energy Management (BOEM) issued a stop-work order for what it said were national security concerns. The Interior Department agency did not specify those concerns at the time. Both the developer and the two states sued in federal courts.

Danish energy company Ørsted and its joint venture partner Skyborn Renewables sought a preliminary injunction in US District Court that would allow them to move forward with the project.

At a hearing on Monday, Judge Royce Lamberth said he considered how Revolution Wind has relied on its federal approval, the delays are costing $2.3 million (€1.95mn) a day, and if the project can’t meet deadlines, the entire enterprise could collapse.

After December, the specialised ship needed to complete the project won’t be available until at least 2028, he said. More than 1,000 people have been working on the wind farm, which is 80% complete.

“There is no question in my mind of irreparable harm to the plaintiffs,” Lamberth said, as he granted the motion for the preliminary injunction. In his written ruling, he said Revolution Wind had “demonstrated likelihood of success on the merits” of its claim, adding that granting the injunction is in the public interest.

Interior Department spokeswoman Elizabeth Peace said the ruling means Revolution Wind “will be able to resume construction” while the Bureau of Ocean Energy Management “continues its investigation into possible impacts by the project to national security and prevention of other uses on the Outer Continental Shelf”.

The administration said in a court filing this month that while BOEM approved the wind farm, it stipulated that the developer continue to work with the Department of Defense to mitigate national security concerns. It said the Interior Department, to date, has not received any information that these concerns have been addressed.

Ørsted said Monday that construction will resume as soon as possible, and it will continue to seek to work collaboratively with the administration. At around 15:00 in Europe, the company’s shares were up by 5%.

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