Europe’s largest wind power company, Ørsted, has blamed Donald Trump for derailing its business model after announcing a $9bn (£6.7bn) fundraising and seeing its market value slump by almost a third. The Danish firm’s share price tumbled to an all-time low on Monday as it told investors that an “extraordinary situation” in the industry forced it to tap shareholders to cover costs.
Ørsted said recent developments in the US prevented it from raising funds by selling a stake in a new offshore wind project off the eastern seaboard, as originally planned. The company typically covers costs by selling stakes in projects once construction is under way, but Trump’s hardline stance against wind energy has slashed the value of its US projects.
Trump ordered a review of offshore wind permitting and leasing on his first day back in the White House in January, dealing a blow to an industry already reeling from post-pandemic supply chain issues and rising interest rates. The president has a long-held dislike of offshore windfarms, dating back to a dispute over turbines visible from his Scottish golf course, and has made unsubstantiated claims about their cost and environmental impact.
Ørsted is proceeding with the Sunrise Wind project off New York and Revolution Wind off Rhode Island. The $9bn fundraising, backed by the Danish government which owns half of the company, aims to strengthen its capital structure. However, the plan sparked market concerns, sending shares to 220.5 kroner (£25.58), below their 2016 flotation price.
Chief executive Rasmus Errboe said the company faces an “extraordinary situation” due to adverse US market conditions and past macroeconomic challenges. He added that the rights issue would reinforce Ørsted’s ability to realise value from its portfolio and capture future opportunities in offshore wind.
