A “perfect storm” of political hostility and supply chain issues has battered the renewable energy sector, with Danish firm Ørsted plummeting to a record low. The company’s shares crashed after it announced a desperate plan to plug a $9 billion financial hole, a crisis it blames directly on the Trump administration’s anti-wind policies.
The administration’s freeze on offshore wind permitting in the US has proven catastrophic for Ørsted’s business model. The company, like many others in the sector, relies heavily on selling partial ownership of its wind farm projects to investors to finance development. With the US market now effectively closed, that revenue stream has vanished.
The situation is “extraordinary,” according to CEO Rasmus Errboe, who underscored the severe impact of the US policy U-turn. The emergency fundraising attempt is a testament to the scale of the financial damage inflicted by the sudden shutdown of what was once considered a primary growth market.
While Denmark’s government is backing its national champion’s attempt to raise capital, the crisis has fueled deep investor concern. The turmoil at Ørsted is seen as a dire warning for the entire green energy industry, signaling that political risks in the US could stall global progress on climate change.