Stockholm (NordSIP) – On Thursday, September 4th, Revolution Wind, a joint venture between Danish windpower company Ørsted and a consortium led by Skyborn Renewables, filed a complaint in the US District Court for the District of Columbia, challenging the stop-work order issued by the Trump Administration on August 22nd. According to Ørsted, this complaint is to be followed by a request for a Preliminary Injunction on the order, which would allow Revolution Wind to proceed with the development of project.
The lawsuit announcement does not happen in a vacuum. US state attorneys general were also scheduled to argue for a motion for summary judgment in a multistate lawsuit against an executive order freezing all wind power projects issued in January. The attorneys general of the two US states that would benefit from the Revolution Wind project also announced they would sue the Trump Administration for its stop-work order. Finally, Ørsted was also scheduled to conduct a rights issue the day after announcing the lawsuit.
Ørsted’s Lawsuit
Revolution Wind is a wind energy project located approximately 28km from the coast of Rhode Island. Beginning in 2026, the project was expected to deliver electricity to power 350,000 homes in New England, equivalent to 2.5% of the region’s electricity supply. The Revolution Wind facility was expected to reduce Rhode Island’s greenhouse gas emissions by 11 million metric tons of CO2.
The stop-work order on the Revolution Wind Project was issued by the US Department of the Interior’s Bureau of Ocean Energy Management (BOEM), which cited ”concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas.” By the time the BOEM issued its stop-work order at the end of August, the project was said to be approximately “80% complete with all offshore foundations installed and 45 out of 65 wind turbines installed”, according to Ørsted.
“While Revolution Wind will continue to seek to work collaboratively with the Administration and other stakeholders toward a prompt resolution, it believes that BOEM lacked legal authority for the stop-work order and that the stop-work order’s stated basis violated applicable law. The project is facing substantial harm from continuation of the stop-work order, and as a result, litigation is a necessary step,” Ørsted argues, noting it has invested billions of dollars in the project.
Ørsted was already in the throes of a crisis due to lower-than-normal offshore wind speeds during July and August. On August 11, it announced an extraordinary general meeting, aiming to increase Ørsted share capital by DKK 60 billion, roughly half of Ørsted’s market capitalisation. As a result of that announcement, the Danish company suffered its largest-ever single-day share price drop (-30%). On September 5th, Ørsted’s general meeting agreed to the issuance of the new shares.
The Way Here
President Trump has a long-standing issue with wind power, dating back at least to challenges in Scottish courts against the construction of wind power turbines within sight of his golf courts in the 2010s. However, his objections have been particularly vociferous during his second mandate.
After being sworn in, President Trump issued a Presidential Memorandum indefinitely halting all federal approvals necessary for the development of offshore and onshore wind energy projects pending federal review. The executive order was met by a joint lawsuit from 18 attorneys general. The plaintiffs were expected to argue their case on the day that Ørsted announced its law suit.
Past experience could hold some hope for Ørsted. Equinor’s Empire Wind project off the coast of New York was also issued a stop-work order, only to see it lifted by the Trump Administration in May after intense engagement from the Norwegian government, the majority owner in Equinor. Given past animosity between the Trump Administration and the Danish government over Donald Trump’s predilection for expanding the USA into Greenland may however undermine similar official efforts from Denmark.
Connecticut and Rhode Island Join the Fray
Ørsted is not alone in its contest of the Trump Administration’s stop-work order. The Attorneys General of Connecticut and Rhode Island, William Tong and Peter Neronha, respectively, also announced they are suing the Trump Administration for its interference with the Revolution Wind project. The Attorneys general describe the order as unjustified , abstract, unprecise, arbitrary and capricious.
“With Revolution Wind, we have an opportunity to create good-paying jobs for Rhode Islanders, enhance energy reliability, and ensure energy cost savings while protecting our environment,” said Attorney General Neronha.
“Revolution Wind is fully permitted, nearly complete and months from providing enough American-made, clean, affordable energy to power 350,000 homes,” said Attorney General Tong. “Now, with zero justification, Trump wants to mothball the project, send workers home, and saddle Connecticut families with millions of dollars in higher energy costs. This kind of erratic and reckless governing is blatantly illegal, and we’re suing to stop it.”
The Attorneys General also noted that the project has been vetted and approved through every layer of the federal and state regulatory process, and is supported by binding contracts and legal mandates. They also note that the disruption of the project may also undermine the states’ energy reliability.
