The Danish government is backing a $9 billion rescue plan for its national energy champion, Ørsted, as hostile policies from the United States bite hard. The wind power giant saw its share price collapse to a record low, falling below its 2016 IPO price, after announcing the massive fundraising effort.
Ørsted stated that its financial plans were upended by “recent material developments in the US.” The Trump administration’s aggressive stance against wind power has devalued the company’s American projects, making it impossible to raise capital by selling a stake in its new wind farm off the US eastern seaboard as originally planned.
This political challenge is compounded by an industry already weakened by supply chain issues and rising interest rates. The White House’s review of wind permits, and a subsequent stop-work order on a Norwegian developer’s project, has signaled that even approved projects are not safe, amplifying investor fear.
Chief Executive Rasmus Errboe described the confluence of market and political challenges as an “extraordinary situation.” The capital injection, supported by the state, is intended to strengthen Ørsted’s balance sheet and allow it to proceed with its global ambitions, including powering over 8 million homes within two years.