Orsted has moved to reassure investors of its commitment to a planned €8bn (DKK60bn) rights issue following the US Bureau of Ocean Energy Management’s (BOEM) order to halt offshore activities at its 704MW Revolution Wind project.
The Danish offshore wind giant said today it “remains firmly committed” to proceeding with the rights issue announced earlier this month, stressing the stop-work order does not change the company’s broader capital strengthening strategy.
The capital increase is a cornerstone of Orsted’s financial plan to improve short-term flexibility and reduce reliance on asset disposals, it said.
Proceeds will primarily cover its full ownership of the 924MW Sunrise Wind project in New York and provide further headroom to execute its DKK35bn asset rotation plan over 2025–2026.
The company said it retains the support of its majority shareholder, the Danish state.
The rights issue has been sized to take into account the impact of policy uncertainty on the company’s US offshore wind portfolio, it added.
A bank syndicate has been appointed for the process, including BNP Paribas, Danske Bank and JP Morgan.
Chief executive Rasmus Errboe (pictured) said” “We’re complying with the order and will work with our US partners and stakeholders to identify a solution as quickly as possible for completing the project and therby help meep the rapidly growing US demand for power.”
Orsted also emphasised that it is “fully evaluating all options” to resolve the situation at Revolution Wind expeditiously.
This includes engagement with permitting agencies and possible legal action to secure clarification and resume work.
The company said it aims to continue construction towards commercial operations in the second half of 2026.
Revolution Wind is 80% complete, with all offshore foundations installed and 45 out of 65 turbines erected.
The project has secured all required state and federal permits, including its Construction and Operations Plan approval granted in November 2023 after a review lasting more than nine years.
The wind farm has 20-year power purchase agreements to supply 400MW to Rhode Island and 304MW to Connecticut, enough to power more than 350,000 homes. Orsted underlined its reliability record by citing the adjacent South Fork Wind, which uses the same turbine technology and delivered a 53% capacity factor in the first half of 2025, comparable to baseload generation.
The developer said the order has no bearing on its long-term strategy or the rationale behind the rights issue.
“Orsted remains strongly committed to the capital increase as a key element in strengthening the company’s balance sheet and positioning for future growth,” it stated.
Orsted added that Revolution Wind continues to support hundreds of union jobs and is part of a wider portfolio of US investments spanning grid upgrades, port facilities, shipbuilding and manufacturing in more than 40 states.
Its US offshore projects have already generated around 4m labour hours, including 2m hours linked to Revolution Wind.
The company is assessing the potential financial impact of the stop-work order under a range of scenarios, including litigation.
Shareholders and prospective investors were urged to await further updates before making investment decisions.
Orsted, headquartered in Copenhagen, said it will keep the market informed on any implications for its financial outlook and the execution of its capital increase plan, but reiterated that the rights issue will proceed.