Orsted Soars as U.S. Judge Restores Work on Revolution Wind Project

Court ruling ends Trump administration’s stop-work order, lifting shares and reducing project risk

Shares of Danish offshore wind giant Ørsted jumped as much as 12% after a U.S. federal judge granted a preliminary injunction that blocks enforcement of the stop-work order on the nearly finished Hurricane-wind project Revolution Wind. The construction halt was ordered by the Trump administration citing vague national security concerns. Ørsted and its partner Skyborn Renewables have invested around US$5 billion in the project, which was 80% complete at the time of suspension.

What the Legal Ruling Means

• Judge Royce Lamberth called the administration’s stop-work order “arbitrary and capricious,” arguing it lacked grounded factual basis. The ruling allows construction to resume while the broader case proceeds.
• At the time of halt, 45 out of 65 turbines were installed, and all offshore foundations were in place. The remainder of site work had been delayed, incurring daily losses of roughly US$2 million.
• Ørsted had recently sought to raise DKK 145 billion (~US$22.9B) via a rights issue in part to shore up finances under strain from inflation, supply chain costs, and regulatory uncertainty.

Market & Strategic Implications

• Stock upside: The ruling removes immediate risk of project cancellation or large write-downs, boosting investor confidence in Ørsted. Shares rallied sharply in early trading.
• Regulatory precedent: The decision challenges how the Trump administration has been handling approvals, leases, and federal oversight for offshore wind projects. It may dampen future administrative stoppages if courts scrutinize them more rigorously.
• Energy policy & climate transition: Revolution Wind is expected to power ~350,000 homes in Rhode Island and Connecticut. Delaying or canceling would have weakened regional clean energy goals. Its resumption sends a signal that large-scale renewable infrastructure still has routes to proceed.

Risks & What to Watch

• Although work is restarting, the legal battle is not over. The government could appeal, or impose additional conditions or oversight, creating uncertainty in schedule or costs.
• Supply chain or inflation escalations could raise remaining cost estimates. Specialized vessels and cable/turbine component supply are tight globally. Delays could be expensive.
• Political risk remains high: regulatory or policy shifts under different administrations could again threaten permitting or operation.
• Liquidity & credit risk: Ørsted’s recent rights issue shows financing pressures. If costs overrun, the company may face tighter credit metrics.

In summary, Ørsted’s win in court restores life to the stalled Revolution Wind project, lifting both financial risk and political pressure. The core theme: legal, financial, and policy headwinds are real, but decisive judicial relief can significantly alter market and project outcomes.