A new chapter has opened in the long and turbulent US saga of Ørsted, the Danish renewable energy giant, after a federal judge ruled in favour of resuming construction on the Revolution Wind offshore wind farm off the coast of Rhode Island. The decision triggered a strong market reaction: Ørsted’s shares rose by 5.44% on the Copenhagen exchange, briefly exceeding 6.6%, and lifting the stock’s year-to-date performance to about +9.5%. The ruling marks a major legal and political victory for Ørsted in its confrontation with the US administration over offshore renewables. Judge Royce C. Lamberth found that stopping a project nearly 90% complete would cause “irreparable harm” to the developer. The Interior Department had ordered the halt citing national security concerns, including possible radar interference, but the court suggested these arguments may have served to delay or obstruct renewable energy development.
Revolution Wind and Sunrise Wind: projects back on track
Revolution Wind, a $5 billion offshore wind project, is now expected to reach first power generation within weeks. Construction had already been halted in August, allowed to resume in September, and then stopped again toward the end of the year, creating uncertainty across the US offshore wind sector. Meanwhile, Ørsted continues work on Sunrise Wind, another major project off the coast of New York, which is still awaiting a separate judicial ruling regarding its completion.
The Ørsted crisis of 2025: costs, write-downs and strategic retreat
The legal breakthrough follows one of the most difficult periods in Ørsted’s history. During 2024 and 2025, the company faced soaring construction and financing costs, supply-chain bottlenecks, inflationary pressures, and regulatory uncertainty in the United States. These factors forced Ørsted to abandon two US offshore wind projects, reshuffle top management, and record multi-billion-dollar write-downs. Investor confidence weakened as Ørsted’s business model appeared increasingly exposed to political risk and cost overruns. In response, the company narrowed its strategy to completing existing US projects rather than expanding further. A turning point came late last year, when Ørsted raised more than $9 billion in new financing, stabilising liquidity and helping restore market confidence.
A symbolic victory for offshore renewables
Beyond its immediate financial impact, the Rhode Island ruling carries broader significance. It signals to investors and developers that advanced offshore wind projects retain legal protection despite political headwinds. For Ørsted, the decision strengthens its position as the global offshore wind sector reassesses risk and returns. If both US projects proceed to completion, the ruling could mark the end of Ørsted’s 2025 crisis and reinforce its role in the transatlantic energy transition.
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