Ørsted files legal challenge against US government over windfarm lease freeze

Europe’s biggest offshore wind developer is taking the Trump administration to court over its decision to suspend work on a $5bn project on the north-east US coast.

Denmark’s Ørsted filed a legal challenge on Thursday against the White House’s decision 10 days ago to suspend the lease for its Revolution Wind site as part of a sweeping move halting all construction of offshore wind.

The attempted injunction is the latest in a series of legal volleys between the renewables industry and Donald Trump, whose administration has sought to block major offshore wind projects from moving ahead since his re-election.

Trump, a vocal supporter of the fossil fuel industry, opposes renewable energy, and wind in particular, saying he finds turbines ugly, costly and inefficient.

On 22 December, officials from the Department of the Interior suspended the leases for five large offshore wind projects that are under construction in US waters over unspecified “national security risks”.

A statement from Ørsted and its partner in the Revolution project, Skyborn Renewables, described the move as a violation of applicable law.

“Litigation is a necessary step to protect the rights of the project,” and avoid “substantial harm” to the project if the suspension order remained in place, according to the statement.

“Revolution Wind secured all required federal and state permits in 2023, following extensive reviews that began more than nine years ago,” it said.

The move emerged months after the Trump administration issued a “stop-work order” against construction of the Revolution project in August, citing a need to “address concerns related to the protection of national security interests”.

The halt to construction sent shockwaves through the industry and pushed the market value of Ørsted, which is partially owned by the Danish state, to record lows. No details of the national security issues were provided by the White House and weeks later a federal judge allowed Ørsted to restart work on the project.

At the time, Sheldon Whitehouse, the Rhode Island senator and ranking member of the Senate Environment and Public Works committee, said: “If Trump’s plan is to raise families’ energy prices, cut American jobs, turbo charge climate change, and accelerate the Great Climate Insurance Crisis, he’s knocking it out of the park with his all-out attack on American offshore wind.”

Construction is now almost 90% complete and the site had been due to begin delivering “reliable, affordable power” to US homes in 2026. Ørsted said it had already installed all offshore foundations and 58 of the project’s 65 wind turbines.

Ørsted shares, which had taken another 12% plunge after the 22 December announcement, were lifted by nearly 4% on Friday on news of the court action.

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