Photo by Stephen Tafra
The Trump administration has halted construction on five major East Coast offshore wind projects totalling $25 billion in investment and 6 gigawatts of capacity, citing classified national security concerns related to potential impacts on military radar systems. However, a federal judge on 13 January cleared one project to resume, dealing a legal setback to the administration’s efforts.
The pause, announced on 22 December, affects Dominion Energy’s 2.6-gigawatt Coastal Virginia Offshore Wind project, Equinor’s 810-megawatt Empire Wind, Ørsted’s 924-megawatt Sunrise Wind and 704-megawatt Revolution Wind, and Avangrid’s 800-megawatt Vineyard Wind project.
Court victory for Revolution Wind
US District Judge Royce Lamberth ruled on Monday that Ørsted could resume work on its nearly finished Revolution Wind project. Ørsted shares jumped 6% on Tuesday, easing fears of multibillion-dollar losses.
The ruling sharply reduces the risk of Revolution Wind being cancelled, which would have caused losses of about $3.12 billion, according to Sydbank analyst Jacob Pedersen. The decision echoes a September court victory when Judge Lamberth rejected the administration’s first attempt to halt the project.
Judge Lamberth said the Interior Department did not adequately explain how the project posed security risks or why halting construction would address these concerns. “Purportedly new classified information does not constitute a sufficient explanation for the bureau’s decision to entirely stop work on the Revolution Wind project,” he stated.
Revolution Wind, built with Siemens Gamesa turbines, is designed with a capacity to deliver 704 megawatts of electricity to Rhode Island and Connecticut. The project is 87% complete with 58 of 65 turbines installed.
“Now our focus is on safely resuming construction work as soon as possible and moving towards delivering reliable and affordable electricity to 350,000 homes,” Ørsted CEO Rasmus Errboe said following the ruling.
Empire Wind faces Friday deadline
Equinor’s 810-megawatt Empire Wind project was more than 60% complete when halted in late December. The Norwegian company has said that any delay beyond 16 January would likely result in project termination and a $5.3 billion financial loss.
An Equinor spokesperson said the company was awaiting a court decision expected for Empire Wind later this week. Shares in Equinor rose 3% on Tuesday.
Dominion Energy disclosed that the halt is costing $5 million per day in vessel costs alone for the Coastal Virginia project, which is 50% complete with $8.9 billion already spent.
Trump calls wind farms “losers”
The administration did not reveal specifics about its national security concerns, but Trump said Friday that wind farms are “losers” that lose money, destroy the landscape and kill birds. “I’ve told my people we will not approve windmills,” Trump said.
White House spokewoman Taylor Rogers stated: “President Trump has been clear: wind energy is the scam of the century.”
Legal challenges mount
New York Attorney General Letitia James filed two lawsuits on 9 January challenging the orders as “arbitrary and unwarranted,” specifically targeting Empire Wind and Sunrise Wind. Connecticut and Rhode Island also filed suit over Revolution Wind.
Rhode Island Attorney General Peter Neronha said: “The law takes precedent over the political whims of one man, and we will continue to fight to make sure that remains the case.”
Attorney Janice Schneider, representing Revolution Wind, said the delay is costing more than $1.4 million per day, and a specialised vessel has just enough time now to install the remaining turbines before its contract expires in February. She noted the Defense Department had refused to share classified information with Ørsted employees who have security clearance.
Financial pressures
Ørsted, already contending with inflation and supply chain delays, raised $9.4 billion last autumn to protect liquidity and avoid credit rating downgrades. S&P Global downgraded the company to BBB in August. On Monday, Moody’s cut its outlook to negative, citing heightened risk that political opposition could delay or derail projects such as Sunrise Wind.
BloombergNEF has slashed US offshore wind projections from 39 gigawatts by 2035 to just 6 gigawatts, whilst California’s Humboldt Bay project lost $427 million in federal funding.
Analysts said the decision raised hopes for a similar outcome on Ørsted’s larger Sunrise Wind project, with JP Morgan noting investors were likely already pricing in a favourable ruling.