Danish wind giant Ørsted is scrambling for $9 billion in cash after a US review of wind permits, ordered by President Trump, blocked its primary financing route. The news sent the company’s stock into a nosedive, hitting an all-time low and falling below its 2016 IPO price.
The permit review has effectively frozen the US market for new wind farm investments. This has prevented Ørsted from selling a stake in its new eastern seaboard project, a standard practice it uses globally to fund its multi-billion-dollar developments.
The scramble for cash comes at a difficult time, with the entire sector facing headwinds from supply chain inflation and higher interest rates. The administration’s move to halt a competitor’s already-approved project has heightened fears that the US market is becoming too politically volatile.
With the backing of the Danish state, Ørsted hopes the fundraising will provide enough “financial robustness” to weather the storm. CEO Rasmus Errboe acknowledged the “extraordinary situation,” as the company fights to save its US projects and maintain its global leadership.
