President Trump’s hardline stance on wind has claimed its first major corporate casualty, with Danish giant Ørsted’s market value collapsing. The company announced a $9 billion emergency fundraiser after its stock plunged to a record low, blaming US policy for the turmoil.
The company’s business model, which relies on selling project stakes to cover costs, was rendered useless in the US. The administration’s review of wind permitting and leasing has so damaged the value of Ørsted’s American assets that it could not proceed with a planned sale.
This political blow has landed on an industry already weakened by economic pressures, such as supply chain inflation and higher borrowing costs. The administration’s shock halt of a competitor’s approved project has created a climate of intense fear and instability.
The Danish government is backing the massive fundraising plan to help its national champion survive the onslaught. The funds are aimed at creating “financial robustness” to navigate what CEO Rasmus Errboe has termed an “extraordinary situation” for the entire industry.