Orsted told to halt Rhode Island wind project by U.S. regulator

Investing.com -- Orsted (CSE:ORSTED) said its U.S. subsidiary has been ordered to halt work on a major offshore wind project near Rhode Island following a directive from the Interior Department’s Bureau of Ocean Energy Management (BOEM).

In a letter sent Friday, BOEM acting director Matthew Giacona instructed the company to cease all activities on the Revolution Wind project, which is located in federal waters, while the agency reviews concerns raised by a Trump administration–commissioned study.

The review comes after President Donald Trump suspended new federal wind leases shortly after taking office.

“BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas,” Giacona wrote.

Orsted confirmed receiving the stop order on Saturday. Revolution Wind, a joint venture with Global Infrastructure Partner’s Skyborn Renewables, began construction last year and is about 80% complete, with 45 of its planned 65 turbines already installed.

The Revolution Wind project is designed to supply power to more than 350,000 homes in Rhode Island and Connecticut.

“Revolution Wind is complying with the order and is taking appropriate steps to stop offshore activities, ensuring the safety of workers and the environment,” Orsted said.

Orsted said it is considering ways to resolve the issue and aims to resume work in the second half of 2026.

“This is another setback for Orsted, and the U.S. offshore wind industry,” Jefferies analyst Ahmed Farman said in a note. “The question now is whether a deal can be struck to restart the project like Empire Wind in NY.”

“Meanwhile, the order has increased risks of further impairments and created a more challenging set-up for Orsted’s upcoming DKK60bn/$9.4bn rights issue,” he added.

The company is also assessing the financial fallout and has not ruled out legal action. Earlier this month, the company announced a $9.4 billion capital raise after delays in the U.S. market disrupted its asset sale program.

The Danish group has struggled in its U.S. expansion, facing supply-chain issues, rising interest rates, and difficulties securing tax incentives. It launched a restructuring last year after scrapping two high-profile projects off New Jersey’s coast.

BOEM said the company will not be permitted to restart activities until the review is finished.