One of the world’s largest renewable energy operators, Orsted, hit a new major blow on Monday. Its shares dropped almost 17% when the U.S. government slapped it with a stop-work order. The order mostly targets the nearly completed Revolution Wind Project which is located offshore Rhode Island. The Bureau of Ocean Energy Management (BOEM) sent the stop-work order late on Friday. The tariff announcement provoked swift repercussions in the stock market.
The freeze of construction has raised fears among investors. As a result, Orsted’s stock fell by 25 percent within the first half hour of trading. The unexpected development has left the company in a challenging position as it seeks to navigate regulatory issues while trying to maintain investor confidence. Orsted welcomed the order, reaffirming its stance to be “fully aligned with… the U.S government’s intent.”
Orsted is reportedly working on solutions to address the underlying issues that have arisen over the Revolution Wind Project. As a result, they’re looking to advance these projects into construction as soon as possible. The company underscored that it has the support of its majority stakeholder, the Danish state, in its endeavors to address the halt and continue with its proposal for the wind project.
With a significant investment in renewable energy, the Revolution Wind Project is a big step forward. Ultimately, the network’s aim is to solidify sustainable energy offerings within the region. Orsted’s resolve to exceed compliance with regulatory requirements shows its commitment to highly responsible development practices within the fast-growing renewable energy sector.
Moving forward, Orsted plans to engage with relevant stakeholders and regulatory bodies to find a resolution that will allow construction to resume. The company is proactive about minimizing financial impacts. This strategy seeks to effectively promote the siting of renewable energy projects throughout the U.S.