A great unwinding of the US wind market is underway, with a new Trump administration policy dismantling the sector and sinking one of its biggest players, Ørsted. The Danish firm’s stock crashed to a record low following its announcement of a $9 billion emergency fundraiser.
The policy at the heart of this unwinding is a freeze on all offshore wind permitting and leasing. This has destroyed the financial architecture of the industry, which relies on companies like Ørsted selling project equity to fund their capital-intensive developments.
CEO Rasmus Errboe has labeled the situation “extraordinary,” pointing to the severe impact of this political reversal combined with existing supply chain woes. The fundraising is a desperate attempt to survive the dismantling of a once-promising market.
The Danish government is supporting its national champion, but the outlook is grim. The great unwinding in the US threatens to have a global ripple effect, reshaping the renewable energy landscape and setting back the fight against climate change.