In a stark tale of two administrations, Danish wind giant Ørsted, which thrived under the supportive policies of President Biden, has crashed under President Trump. The company’s stock hit an all-time low after it announced a $9 billion cash call, blaming the new administration for derailing its business.
Under the Biden administration, the US offshore sector was burgeoning. However, on his first day back in office, Trump ordered a review of wind permitting, a move that has slashed the value of Ørsted’s US projects and made its financing model of selling project stakes unworkable.
This dramatic policy reversal has shocked an industry already grappling with high costs and interest rates. Trump’s long-held personal dislike of wind turbines, once a minor issue, has now become the basis for a policy that is causing billions in corporate damage.
The Danish government is now backing a massive rescue plan for the company it owns a 50% stake in. Ørsted’s CEO called the situation “extraordinary,” as the company scrambles for funds to ensure its “financial robustness” in a newly hostile America.