Orsted (ORSTED.CO) stock fell over 16% to a record low on Monday after the world’s biggest offshore wind farm developer said the Trump administration issued a stop-work order for its nearly completed Revolution Wind project off the coast of Rhode Island.
Late Friday, the Department of the Interior’s Bureau of Ocean Energy Management (BOEM) ordered the Danish company to stop activities on the project. Orsted said the project was 80% complete, with all foundations in place and 45 out of the 65 wind turbines installed. The offshore wind project was expected to deliver power to 350,000 homes in Rhode Island and Connecticut.
Read more about Orsted’s stock moves and today’s market action.
The BOEM’s order cited “national security interests” as a reason for the action but did not define the particular concerns. Orsted, which is 50.1% owned by the Danish government, said it is complying with the action and “evaluating all options to resolve the matter expeditiously,” including legal proceedings.
“The Trump administration’s stop-work order on Revolution Wind undermines efforts to expand our energy supply, lower costs for families and businesses, and strengthen regional reliability,” Rhode Island Gov. Dan McKee said in a statement. “We are working with our partners in Connecticut to pursue every avenue to reverse this decision.”
This isn’t the first time the US government has ordered a major offshore wind project to stop work. In April, the BOEM halted Norwegian energy company Equinor’s $2.5 billion Empire Wind 1 project to power 500,000 homes in New York. However, the BOEM lifted its stop-work order in May, and the project resumed.
Throughout his second term, President Trump has pressured the wind and renewable energy industry while championing fossil fuels. On Aug. 20, Trump called wind and solar power “THE SCAM OF THE CENTURY!” in a Truth Social post, where he also sought to link renewable energy to higher electricity costs.
As one of his first executive actions, Trump temporarily paused all federal wind permits, which remains in effect today. Trump’s signature tax and spending law, the One Big Beautiful Bill Act (OBBBA), also accelerated the phaseout of wind and solar tax credits.
And last Thursday, the Trump administration said it opened a Section 232 investigation into imported wind turbines, which sets a path for imposing tariffs. Analysts viewed the investigation as a way to increase wind project costs and further hamper the industry.
