The American dream has turned sour for Danish wind giant Ørsted, whose ambitious US expansion plans have been crushed by the Trump administration, forcing a $9 billion rescue plan. The company’s shares crashed to an all-time low after it announced the emergency fundraising to deal with the fallout.
The souring of relations is due to a hostile US policy environment that has “derailed” Ørsted’s business model. A White House review of all wind permits has made it impossible for the company to finance its US projects by selling stakes to investors, a crucial part of its global strategy.
This political nightmare is unfolding against a backdrop of economic pain for the industry, with high inflation and interest rates making projects more expensive. Trump’s personal vendetta against wind farms, once a curious anecdote about a Scottish golf course, is now official US policy with devastating financial consequences.
The Danish government, a 50% owner, has stepped in to back the rescue plan. CEO Rasmus Errboe described the “extraordinary situation” and stated the $9 billion would provide the “financial robustness” needed to salvage its US projects and continue its worldwide operations.