Danish wind power leader Ørsted has sent out a $9 billion financial SOS after its stock sank to an all-time low, a direct result of a newly hostile business environment in Trump’s America. The company’s worst trading day in history was precipitated by its announcement of a massive emergency fundraising effort.
The source of the turmoil is a set of antagonistic policies from the Trump administration aimed at the renewable energy sector. A freeze on offshore wind permitting and leasing has effectively shuttered a key market, demolishing Ørsted’s business model of financing projects by selling equity stakes to partners.
The crisis has been labeled “extraordinary” by CEO Rasmus Errboe, who emphasized that the combination of US political obstruction and supply chain woes created an untenable situation. The urgent need for billions in new capital underscores the severity of the threat to the company’s operations.
Backed by the Danish government, its majority owner, Ørsted is attempting to navigate the crisis. However, the situation serves as a stark reminder of the political risks facing the green energy transition, with the potential to derail not only US projects but also global climate commitments.