The political winds have shifted dramatically in the United States, leaving Danish energy firm Ørsted facing a $9 billion financial black hole. The company’s stock plummeted to a record low after it announced an emergency capital raise, a direct result of the Trump administration turning against renewable energy.
The crisis stems from a deliberate move to halt offshore wind development through a review of all permits and leases. This has destroyed Ørsted’s ability to finance its projects by selling equity to partners, a standard industry practice that is now impossible in the current US climate.
The situation has been described as “extraordinary” by CEO Rasmus Errboe, who pointed to the twin challenges of hostile American policy and ongoing supply chain disruptions. The desperate need for $9 billion is a stark measure of the damage inflicted.
With the support of the Danish government, a majority owner, Ørsted aims to survive this storm. However, the event has raised serious doubts about the viability of the US renewable market, with experts warning of a potential domino effect that could impact global climate action.