Wind energy titan Ørsted aims for financial expansion following setbacks in the US market
Ørsted, a leading Danish offshore wind power group, announced plans to raise 60 billion kroner ($9.4 billion) by selling new shares, following a 28 percent drop in the company's shares on the Copenhagen stock exchange.
The financial difficulties facing Ørsted have reportedly deepened due to US President Donald Trump's opposition to the wind power sector. Trump's administration has implemented a 60-day moratorium on offshore wind leasing, tightened criteria for renewable energy tax credits, and imposed tariffs on critical energy components, such as steel and aluminum, which have significantly increased bureaucratic hurdles and construction costs for offshore wind infrastructure.
Trump's executive orders require more stringent federal reviews and have rescinded preferential treatment for wind power development on federal lands. His vocal refusal to approve new wind projects, labeling them as financially and environmentally problematic, further undermines investor confidence and disrupts project pipelines.
As Ørsted heavily relies on the US market for its offshore wind projects, these policies restrict the company's ability to start or complete new projects within required deadlines, thus causing financial strain through delayed or canceled investments and reduced future revenues.
The funds raised by Ørsted are intended to address the company's woes. However, the announcement did not provide specific reasons for the fundraising.
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