Ørsted, the Danish offshore wind giant, has moved swiftly to reassure investors about its commitment to an €8bn (DKK60bn) rights issue, despite a setback at its 704MW Revolution Wind project in the US. The company stated today that it “remains firmly committed” to the capital increase, announced earlier this month, emphasizing that the stop-work order from the US Bureau of Ocean Energy Management (BOEM) does not alter its broader financial strategy.
The rights issue is a pivotal part of Ørsted’s plan to bolster its balance sheet, enhance short-term financial flexibility, and reduce reliance on asset disposals. The proceeds will primarily fund its full ownership of the 924MW Sunrise Wind project in New York and provide additional financial headroom to execute its DKK35bn asset rotation plan over 2025–2026. The company noted that it retains the backing of its majority shareholder, the Danish state.
The capital increase has been sized to account for policy uncertainties affecting Ørsted’s US offshore wind portfolio. A bank syndicate, including BNP Paribas, Danske Bank, and JP Morgan, has been appointed to manage the process. Chief executive Rasmus Errboe stated, “We’re complying with the order and will work with our US partners and stakeholders to identify a solution as quickly as possible for completing the project and thereby help meet the rapidly growing US demand for power.”
Ørsted is actively evaluating all options to resolve the situation at Revolution Wind, including engaging with permitting agencies and considering legal action to secure clarification and resume work. The company aims to continue construction towards commercial operations in the second half of 2026. Revolution Wind is currently 80% complete, with all offshore foundations installed and 45 out of 65 turbines erected. The project has secured all necessary state and federal permits, including its Construction and Operations Plan approval granted in November 2023 after a review lasting over nine years.
The wind farm has 20-year power purchase agreements to supply 400MW to Rhode Island and 304MW to Connecticut, enough to power more than 350,000 homes. Ørsted highlighted its reliability record by citing the adjacent South Fork Wind, which uses the same turbine technology and delivered a 53% capacity factor in the first half of 2025, comparable to baseload generation.
The developer emphasized that the order has no bearing on its long-term strategy or the rationale behind the rights issue. “Ørsted remains strongly committed to the capital increase as a key element in strengthening the company’s balance sheet and positioning for future growth,” it stated. The company added that Revolution Wind continues to support hundreds of union jobs and is part of a wider portfolio of US investments spanning grid upgrades, port facilities, shipbuilding, and manufacturing in more than 40 states. Its US offshore projects have already generated around 4m labour hours, including 2m hours linked to Revolution Wind.
Ørsted is assessing the potential financial impact of the stop-work order under various scenarios, including litigation. Shareholders and prospective investors were urged to await further updates before making investment decisions. The company, headquartered in Copenhagen, said it will keep the market informed on any implications for its financial outlook and the execution of its capital increase plan, but reiterated that the rights issue will proceed.
This development could shape the offshore wind sector in several ways. First, it underscores the importance of policy certainty and regulatory clarity for large-scale energy projects. The stop-work order at Revolution Wind highlights the risks associated with policy uncertainties, which can impact investor confidence and project timelines. Second, Ørsted’s commitment to the rights issue, despite the setback, demonstrates the company’s resilience and long-term vision. This could encourage other players in the sector to adopt a similar approach, focusing on strategic financial planning and risk management.
Moreover, the situation at Revolution Wind may prompt a broader discussion about the balance between environmental regulations and the need for renewable energy development. As the US and other countries strive to meet their climate goals, finding a middle ground that ensures both environmental protection and energy security will be crucial. Finally, Ørsted’s emphasis on its reliability record and the potential of its US offshore wind portfolio could spur further investment in the sector, driving innovation and technological advancements. The company’s commitment to union jobs and its wide-ranging investments in the US could also contribute to the growth of the domestic supply chain, creating more jobs and economic opportunities.