Orsted shares jump after US judge allows Revolution Wind project to restart

Shares in Danish offshore wind developer Orsted surged by more than 5% after a US federal judge cleared the company to resume work on its near-complete Revolution Wind project, dealing the first legal blow to the Trump administration’s halt on offshore wind developments.

The decision comes weeks after the White House ordered a pause on five major offshore wind projects along the US East Coast, citing national security concerns flagged by the Pentagon.

On Monday, US District Judge Royce C. Lamberth in Washington said Orsted was likely to suffer “irreparable harm” if construction on Revolution Wind remained suspended, granting an injunction that allows work to restart while the broader legal challenge proceeds.

Revolution Wind, located off the coast of Rhode Island, was about 87% complete when the Interior Department issued a stop-work order on Dec. 22.

The $5 billion project is expected to generate power for around 350,000 homes in Rhode Island and Connecticut.

The project is a 50/50 joint venture between Orsted and Skyborn Renewables, a unit of Global Infrastructure Partners owned by BlackRock.

The developers have previously said they have already spent roughly $5 billion on the project.

Orsted said the construction halt was costing the project around $1.4 million a day.

“The project will resume construction work as soon as possible, with safety as the top priority,” the company said, adding it remained focused on delivering affordable and reliable power to the US northeast.

Injunction on Sunrise Wind awaited

Jefferies estimated that the stop-work order would have a relatively small financial impact on Orsted if no further interruptions occur, putting the hit at about DKK 100 million ($15.6 million) for Revolution Wind.

The broker said investors would now focus on Orsted’s other US project, Sunrise Wind, which remains suspended.

Jefferies expects a court date soon for a preliminary injunction in that case, noting that Orsted filed its legal challenge for Sunrise Wind just six days after filing for Revolution Wind.

Shares in Vestas were also expected to benefit from the ruling, with analysts pointing to reduced regulatory risk for US offshore wind projects if courts continue to push back against the administration’s moratorium.

National security argument rejected by Judge

Government lawyers had argued that the pause was justified by newly disclosed, classified information from the Defense Department about offshore wind’s potential national security implications.

Judge Lamberth rejected that argument, questioning the logic of stopping construction entirely while the government reviewed its position.

“You want to stop everything in place, costing them one-and-a-half million a day, while you decide what you want to do?” he said during the hearing.

The injunction will remain in effect until the case is concluded. The Interior Department did not immediately respond to requests for comment.

Offshore wind under political pressure

President Donald Trump has vowed to block wind power projects across the US, telling oil executives last week that “we will not approve any windmills in this country”.

The Interior Department’s moratorium applies to five offshore wind developments along the East Coast.

In addition to Orsted, companies affected include Equinor and Dominion Energy.

For now, investors are betting that the court’s decision marks a turning point, at least for projects already nearing completion.

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