A financial storm has engulfed Danish energy firm Ørsted, sparked by the Trump administration’s review of offshore wind permits. The company’s stock has been decimated, hitting an all-time low and forcing it to announce a $9 billion emergency fundraising plan to stay afloat.
The permit review, ordered on Trump’s first day back in the White House, dealt a fatal blow to Ørsted’s financing model in the US. The company, which builds some of the world’s largest wind farms, was planning to sell a stake in its eastern seaboard project to cover costs, but the policy move has rendered the asset almost worthless to investors.
The storm’s impact is magnified by existing industry pressures, such as post-pandemic supply chain issues and the rising cost of borrowing. Trump’s personal and long-held animosity towards wind turbines has now metastasized from a personal gripe into a policy causing international corporate distress.
With the support of the Danish government, which owns half the company, Ørsted is attempting to navigate the storm. The capital raise is aimed at strengthening its balance sheet while it pushes ahead with global plans, including two major wind farms in the now-hostile US market.