Denmark-based renewable energy company Ørsted announced on Friday that it is contesting the U.S. government’s decision to suspend the federal lease for its Revolution Wind joint venture and intends to seek a court injunction to block the halt of the $5 billion offshore wind development.
Government position and industry reaction
The lease suspension, issued on December 22 by the Trump administration, affected five major offshore wind projects currently under construction along the U.S. East Coast. The administration cited national security concerns as the basis for the move, triggering sharp declines in the share prices of offshore wind developers.
The decision represents another setback for the offshore wind sector, which has faced repeated interruptions to large-scale investments during the presidency of Donald Trump. The former president has previously criticized wind energy, describing turbines as unattractive, expensive, and ineffective.
In a statement released on Friday, Ørsted said the Revolution Wind project was approximately 87% complete and, prior to the suspension order, was expected to begin producing electricity as early as January 2026.
Next steps for Ørsted and sunrise wind
“Revolution Wind has spent and committed billions of dollars in reliance upon, and has met the requests of, a thorough review process“, Ørsted said in the statement. Revolution Wind LLC—a joint venture equally owned by Ørsted and Global Infrastructure Partners’ Skyborn Renewables—has filed a formal complaint with the U.S. District Court for the District of Columbia.
The partners disclosed in September that they had already invested or committed roughly $5 billion toward the project.
Ørsted’s shares fell by 13% on Monday following the U.S. government’s announcement.
The company has been under financial pressure from rising inflation, higher interest rates, supply chain disruptions, and regulatory challenges. In response, Ørsted last year raised 60 billion Danish crowns ($9.4 billion) through a heavily discounted share issuance to strengthen its balance sheet.
The lease suspensions have drawn criticism from state officials, Democratic lawmakers, and industry trade associations, many of whom have characterized the decision as unjustified.
According to the U.S. Department of the Interior, the action followed concerns raised by the Pentagon, which argued that the transportation of large offshore wind turbine blades and the reflective nature of turbine towers could interfere with radar systems, complicating the detection and tracking of potential security threats.
Meanwhile, Sunrise Wind LLC—an Ørsted subsidiary that also received a lease suspension notice—said it is continuing to assess all available options to address the situation.
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