Judge Royce Lamberth granted an injunction allowing Orsted to resume work on the Revolution Wind project. BOEM halted work on the project one month ago.
Posts Tagged ‘Orsted’
Victory for Orsted or temporary reprieve?
Posted in energy policy, Offshore Wind, Regulation, tagged BOEM, injunction, Judge Lamberth, Orsted, Revolution Wind on September 22, 2025| Leave a Comment »
Was MOU with California prudent for Denmark?
Posted in California, climate, energy policy, tagged California, Denmark, MOU, Orsted, Revolution Wind, S 237 on September 19, 2025| Leave a Comment »
As is the case for most MOUs, the attached 8/22/2025 agreement between California and Denmark is long on promotion and short on substance. No funds are obligated and there are no work commitments.
The MOU made sense for Gov. Newsom in that he strengthened his green credentials by aligning with the country that is the spiritual leader for climate activists.
The benefits for Denmark were unclear, but the risks should have been apparent. The White House is fundamentally opposed to the climate and energy objectives identified in the MOU. Ørsted (50.1% govt owned) and other Danish business interests are very much dependent on decisions made by the US Federal govt.
Work on Ørsted’s Revolution Wind project has been halted by Interior Secretary Burgum. His decision is being challenged in court, but no matter what the outcome, offshore wind development will be difficult for Ørsted and other foreign companies going forward. The Secretary has broad regulatory authority under the OCS Lands Act, under which there is no such thing as “a fully permitted project.”
Meanwhile, California’s green status has taken a hit with the passage of S 237, which pragmatically authorizes new onshore drilling.
Lastly, as the chart below illustrates, Orsted’s problems didn’t begin in 2025.
Equinor ups its Ørsted ante. Good money after bad or shrewd contrarian investment?
Posted in Norway, Offshore Wind, tagged energy, Equinor, good money after bad?, Offshore Wind, Orsted, special shares on September 1, 2025| 1 Comment »
Equinor (2/3 Norwegian govt owned) is increasing its position in Ørsted (50.1% Danish govt owned). Given the ownership structure, public money is at risk for both countries.
The comments below are from a DN Norway article. They were made by CEO Torgrim Reitan after Equinor announced that the company will contribute NOK 10 billion (USD 1 billion) in Ørsted’s special share offering.
Given that the value of their initial NOK 26 billion (USD 2.6 billion) investment in Ørsted last fall has almost been cut in half, this is a bold move by Equinor. The company has been sharply criticized for its wind investments by private Norwegian investors.
“We want a closer partnership with Ørsted. We are two leading companies in offshore wind, and we believe a closer collaboration could create significant value for both Ørsted’s and our own shareholders.”
“This industry is now going through its first real crisis. That makes it quite clear what’s needed. We know a lot about this from oil and gas. What often happens in such times is consolidation.”
“We want a closer partnership with Ørsted. We are two leading companies in offshore wind, and we believe a closer collaboration could create significant value for both Ørsted’s and our own shareholders.”
“In recent weeks, we’ve had conversations with Ørsted management, and we’ve also had conversations with the Danish state. But the discussions have primarily been with Ørsted.”
“Ørsted is in a difficult situation right now. For us, as an industrial and long-term owner, it’s important to be supportive and helpful in such a situation. That’s why we’re putting in nearly a billion dollars.”
“This is a difficult decision, because clearly a lot of equity capital needs to be raised, but we have a fundamental belief in the industry, and also in the company. Ørsted’s underlying portfolio is a strong one.”
“Going forward, this will increase our debt ratio somewhat—maybe by about two percentage points. But we’re starting from a very low debt ratio. So we can manage this within our financial framework. As for capital distribution in 2026 and beyond, we will remain competitive.”
Meanwhile, Equinor is the only major oil company that remains invested in US offshore wind energy. Equinor’s Empire Wind project continues to be highly divisive.
Letter from BOEM to Ørsted
Posted in energy policy, Offshore Wind, Regulation, tagged BOEM, interference with other uses, national security, Orsted, Revolution Wind, shutdown order on August 23, 2025| Leave a Comment »
The Revolution Wind shutdown order is attached. The letter cites concerns about national security and interference with other offshore activities.
Excerpt from Ørsted’s response:
“Ørsted is evaluating all options to resolve the matter expeditiously. This includes engagement with relevant permitting agencies for any necessary clarification or resolution as well as through potential legal proceedings, with the aim being to proceed with continued project construction towards COD in the second half of 2026.”
BOEM halts activity on Ørsted’s Revolution Wind project!
Posted in energy policy, Offshore Wind, Regulation, tagged activity halted, BOEM, Orsted, Revolution Wind on August 22, 2025| Leave a Comment »
The Bureau of Ocean Energy Management (BOEM) is halting activity on the Revolution Wind project off the coast of Rhode Island and Connecticut. No details on this decision have been provided.
According to Ørsted, all of Revolution Wind’s foundations and almost 70 per cent of the turbines have been installed.
Revolution Wind is a partnership between Ørsted and Global Infrastructure Partners’ Skyborn Renewables.
Ørsted’s troubles and Atlantic wind decommissioning
Posted in decommissioning, Offshore Wind, tagged Atlantic wind, Ørsted stock price, decommissioning, Equinor, financial assurance, Orsted, Revolution Wind, South Fork Wind, Sunrise Wind on August 14, 2025| 1 Comment »
Ørsted’s stock price plummeted on Monday following the announcement of a $9.4 billion rights issue to fund the Sunrise Wind project. The share price has remained depressed (chart below).
Also, although Ørsted attributes its financial woes to the change in US policies, it’s apparent in the second chart (5 year trend) that the decline in Ørsted’s valuation has been ongoing since 2021.
In March, Fitch downgraded Ørsted’s rating to BBB from BBB+, and its subordinated rating to BB+ from BBB-. Further downgrades would seem to be a distinct possibility.
Meanwhile, decommissioning financing for the 3 Ørsted projects under construction in the US Atlantic is far from assured:
- Revolution Wind: As they did for Vineyard Wind, BOEM approved Ørsted’s request to defer full decommissioning financial assurance until 15 years after the beginning of construction (see attached letter). This approval was prior to the Renewable Energy Modernization Rule (effective June 29, 2024), which eliminated the need for such waivers.
- Sunrise Wind: Ørsted is now solely responsible for funding and constructing this project given the company’s failure to find investment partners. Presumably, decommissioning financial assurance was not required given BOEM’s latitude under the so-called “Modernization Rule.”
- South Fork Wind: As is the case with Sunrise Wind, BOEM presumably allowed Ørsted to defer financial assurance for decommissioning as permitted by the “Modernization Rule.”
According to Ørsted, almost 70% of the turbines are installed at Revolution Wind and the first foundations have been installed at Sunrise Wind. South Fork Wind, 12 turbines and an offshore substation, is complete.
Given Ørsted’s strained finances, will BOEM now opt to require decommissioning assurance as provided for in 30 CFR § 585.517?
Ørsted’s situation is atypical in that the Danish government owns a majority (50.1%) stake in the company and Equinor, which is 2/3 Norwegian govt owned, holds a 9.8% stake. How will government ownership factor into BOEM decisions regarding decommissioning assurance? Note that Norwegian govt lobbying may have been one of the factors influencing the decision to allow the resumption of construction on Equinor’s Empire Wind project.
Meanwhile, two Danish opposition parties are calling for the state to relinquish its ownership stake in Ørsted.
Equinor taking heat from Norwegian investors
Posted in climate, Norway, Offshore Energy - General, Offshore Wind, tagged Empire Wind, Equinor, green agenda, Norway, Offshore Wind, Orsted on January 22, 2025| Leave a Comment »
Equinor’s investment in Orsted and their Empire Wind project in the US Atlantic are featured in this DN article (translated to English). Excerpts follow:
Equinor’s investment of over 26 billion kroner in the Danish wind power company Ørsted has so far been a financial disaster – and now it’s going from bad to worse.
“We are very negative about the whole green initiative, as the return on the investments they make is far too low. When they also buy minority stakes in other green companies that we cannot count on, such as Ørsted, it means that we would rather own other oil companies.” Gaute Eie, Eika Kapitalforvaltning
The market has long been concerned that Equinor will throw money at renewable projects with low or no profitability.
In a recent note, Pareto analysts Tom Erik Kristiansen and Olav Haugerud point out that the Ørsted writedown does not bode well for Equinor’s own US projects either. They foresee a writedown of up to $1.1 billion, given that Equinor faces the same type of challenges as Ørsted.
Eie believes there is no reason why Equinor in particular should have a green initiative:
Aker BP is not doing green, Vår Energi is not doing green, and all the big oil companies are going back on this. Then we’ll see if Equinor has the guts to buy even more Ørsted shares, because now it’s 35 percent cheaper. If they do, we’ll have even fewer Equinor shares.
Sissener believes Equinor should rather focus on dividends and concentrate on oil and gas projects.
– We generally stay away from companies where the state is a major owner, because there you have to be so politically correct all the time. What we need are shareholder-friendly board representatives who know how to run a business and maintain control. In a broader perspective, this helps to destroy trust in Norwegian business.
North Sea shutout – no bids for Danish wind leases
Posted in energy policy, Offshore Energy - General, Offshore Wind, tagged Denmark, no bids, North Sea, Orsted, wind leases on December 6, 2024| Leave a Comment »
Danish Energy Agency: “The deadline for bidding on the first 3 GW of Denmark’s 6 GW offshore wind tendering procedure expired on Thursday. The Danish Energy Agency has not received bids for any of the three offshore wind farms in the North Sea put out to tender. The Minister for Climate, Energy, and Utilities has asked The Danish Energy Agency to engage in dialogue with the market to identify why no bids have been submitted.“
Even Orsted, which is 50.1% Danish govt owned, failed to submit a bid. Perhaps the economic realities of offshore wind, as reflected in Orsted’s share price (below) are sinking in.
Tough day for Orsted
Posted in Offshore Wind, tagged 2024 election, bad day, Offshore Wind, Orsted on November 6, 2024| Leave a Comment »
Bud's Offshore Energy (BOE) 