A hostile political climate in the United States has caused Danish wind giant Ørsted to crash, with its stock hitting a record low. The collapse followed the company’s announcement of a $9 billion emergency fundraiser, a move necessitated by the Trump administration’s long-held anti-wind stance becoming official policy.
The new policy involves a freeze on the US offshore wind market through a review of all permits and leases. This has crippled Ørsted’s business model, which depends on selling stakes in its development projects to finance the high costs of construction.
CEO Rasmus Errboe has labeled the situation “extraordinary,” pointing to the devastating combination of US political opposition and existing supply chain difficulties. The emergency fundraising is a direct response to this hostile environment, aimed at securing the company’s future.
Backed by the Danish government, its majority owner, Ørsted hopes to navigate the turmoil. However, the crisis underscores the profound risk that political shifts in key markets pose to the global green energy transition and international climate commitments.