COPENHAGEN (Reuters) -Shares in Orsted rose as much as 12% in early trade on Tuesday after a U.S. federal judge ruled that it can resume work on the almost completed Revolution Wind project halted by U.S. President Donald Trump’s administration last month.
The ruling is a legal setback for Trump, who has repeatedly criticised wind farms as ugly, unreliable and expensive, leaning on federal agencies to curb development of wind power projects.
For Orsted, however, it is a significant win. The offshore wind power developer has been losing $2 million a day since the U.S. Bureau of Ocean Energy Management (BOEM) issued its work-stop order on August 22, citing unspecified national security concerns.
Orsted shares were up 7% at 118.6 Danish crowns by 0731 GMT.
The Revolution Wind project, located 15 miles off the coast of Rhode Island, was 80% complete at the time, with all offshore foundations in place and 45 of 65 wind turbines installed.
The Danish company and joint venture partner Skyborn Renewables have already spent or committed about $5 billion on the project, which would incur over $1 billion in breakaway costs if cancelled, according to U.S. court filings by the companies.
Orsted was struggling to avoid a potentially crippling credit rating downgrade even before the work-stop order. Squeezed by inflation, higher interest rates and supply chain delays, Orsted asked shareholders in August for a $9.4 billion injection.
Once the fully guaranteed rights issue is completed, the company will have a liquidity reserve of 145 billion crowns ($22.9 billion), which finance chief Trond Westlie said was enough to complete existing projects.
($1 = 6.3333 Danish crowns)
(Reporting by Louise RasmussenEditing by Jacob Gronholt-Pedersen and David Goodman)
