Finance
Orsted shares jump as US court lifts Trump block on wind project
Published by Global Banking and Finance Review
Posted on January 13, 2026
Orsted Shares Surge After US Court Lifts Block on Wind Project
Impact of US Court Ruling on Orsted
By Stine Jacobsen
Overview of the Revolution Wind Project
COPENHAGEN, Jan 13 (Reuters) - Orsted shares jumped 6% on Tuesday after a U.S. court cleared the Danish offshore wind developer to resume work on its nearly completed Revolution Wind project, easing fears of multibillion-dollar losses.
Financial Implications for Orsted
The ruling comes after repeated disruptions to offshore wind projects under U.S. President Donald Trump, who has criticised wind turbines as ugly, costly and inefficient.
Future of Offshore Wind Projects
Orsted's lawsuit is among several filed by offshore wind companies and states seeking to overturn the Interior Department's December 22 suspension of five offshore wind leases over what it said were national security concerns.
RESUMING WORK AS SOON AS POSSIBLE
The suspension has also hit Orsted's Sunrise Wind project, Equinor's Empire Wind near New York and Dominion Energy's Coastal Virginia Offshore Wind facility. Shares in Equinor were up 3% at 0925 GMT.
"Now our focus is on safely resuming construction work as soon as possible and moving towards delivering reliable and affordable electricity to 350,000 homes in Rhode Island and Connecticut," Orsted CEO Rasmus Errboe said in a statement late on Monday following the ruling.
The decision echoes a September court victory when a judge rejected the administration's first attempt to halt the project. Both suspensions cited national security concerns that judges found insufficient to justify the disruption.
The ruling sharply reduces the risk of Revolution Wind being cancelled, which would have caused losses of about 20 billion Danish crowns ($3.12 billion), according to Sydbank analyst Jacob Pedersen.
Analysts said the decision raised hopes for a similar outcome on Orsted's larger Sunrise Wind project, with JP Morgan noting investors were likely already pricing in a favourable ruling.
CREDIT RISKS AND POLITICAL HEADWINDS
Orsted, already contending with inflation, higher interest rates and supply chain delays, raised $9.4 billion in a rights issue last autumn to protect liquidity and try to avoid further credit rating downgrades. It has struggled to attract co-investors, particularly for Sunrise Wind, amid resistance from the Trump administration.
S&P Global downgraded the company to BBB, the lowest investment-grade rating, in August.
On Monday, Moody's cut its outlook on the company to negative from stable, citing heightened risk that political opposition in the U.S. could delay or derail offshore wind projects such as Sunrise Wind.
A further downgrade would push up borrowing costs and hit earnings, analysts warned.
($1 = 6.4073 Danish crowns)
(Reporting by Stine Jacobsen. Editing by Louise Heavens and Mark Potter)
Frequently Asked Questions about Orsted shares jump as US court lifts Trump block on wind project
1What is offshore wind energy?
Offshore wind energy refers to the use of wind turbines located in bodies of water to generate electricity. It is a renewable energy source that harnesses wind power to produce clean energy.
2What is a court ruling?
A court ruling is a decision made by a judge or court regarding a legal case. It can determine the outcome of disputes, enforce laws, and set legal precedents.
3What is a financial loss?
A financial loss occurs when an individual or organization experiences a decrease in their financial assets or capital, often due to unsuccessful investments or operational costs exceeding revenues.
