Revolution Wind is back on track, but the monthlong pause prompted by the Trump administration continues to ripple down the project developer’s balance sheet, according to third-quarter earnings reported Wednesday.
Ørsted A/S, the Danish renewable energy company co-developing the project, ended the three-month period $261.8 million in the red, a marked reversal from the $795 million profit for the same period a year ago. The losses stem in large part from depreciating value of the company’s U.S. projects due to rising tariffs and federal anti-wind policies, including a $76.9 million impairment recorded on the Revolution Wind project.
The depreciation in project value is directly tied to a stop work order unexpectedly handed down in August by federal regulators over concerns with national security. The 65 turbines being built 15 nautical miles south of Rhode Island were already 80% complete with final federal approval secured in November 2023. Inked agreements in 2019 committed the developer to sell power to Rhode Island and Connecticut utilities by 2027.
Ørsted made no secret of the financial consequences of the stop work order, detailing $2 million in daily losses on installation and manufacturing contracts in its federal lawsuit challenging the Trump administration. A second lawsuit filed by attorneys general in Rhode Island and Connecticut also sought to overturn the stop work order based on the environmental and economic harms to the states.
Ørsted’s lawsuit progressed faster, with a Sept. 22 preliminary injunction from a federal judge in D.C. allowing work to resume, at least temporarily. A similar decision remains pending in the AGs’ lawsuit in Rhode Island federal court.
The still tenuous legal and political circumstances underscoring the $5 billion project were front and center during an 80-minute call Wednesday. Investors and analysts had questions: What happens if the Trump administration appeals the court order? Is there any merit to security concerns? What if the legal challenge has not been resolved by the time the project is finished?
Company executives remained tight-lipped in their answers, acknowledging the potential for more obstacles from the Trump administration but refusing to disclose details on the company’s strategy beyond that it is pursuing both legal recourse and negotiations with federal regulators.
Rasmus Errboe, Ørsted CEO and president, dismissed the idea that the developer would abandon the project.
“We have come so far on Revolution, the commitment is there,” he said.
Anticipating financial fallout across its U.S. portfolio, the company initiated a heavily discounted share sale in early September, raising $9.4 billion in a rights issue that closed Oct. 3. On Monday, the company unveiled a deal to sell half the rights to an under-construction British offshore wind project, Hornsea 3, to a New York management company for $6.1 billion.
“We’ve significantly strengthened Ørsted’s financial robustness with the completion of the rights issue and the agreement to divest a 50% stake in our Hornsea 3 project in the UK,” Errboe said in a statement Wednesday. “I’m pleased with the strong support from our shareholders. I see this as a strong indication that our investors see significant potential in Ørsted and in the offshore wind industry. Our key focus is to continue delivering on our business plan, which will enable Ørsted to remain a global leader of offshore wind with a strong foothold in Europe.”
In the short-term, Revolution Wind remains on schedule to begin delivering power to Rhode Island and Connecticut in the second half of 2026. The 704 megawatts of nameplate capacity, 400 megawatts of which is under contract for purchase by Rhode Island, would provide enough electricity to power 350,000 homes across both states.
As of Sept. 30, 52 of the 65 turbines have been installed, along with the second offshore substation, according to Ørsted’s earnings report. Next steps include completing the onshore substation in North Kingstown’s Quonset port, which will connect the renewable electricity to the electric grid, and continued installation of remaining turbines and undersea cables.
The company’s financial outlook remains unchanged from the second quarter, expecting full-year earnings before interest, taxes, depreciation and amortization of $3.7 billion to $4.2 billion dollars.
Ørsted shares rose 0.8% when U.S. markets opened Wednesday morning.
This story was originally published by the Rhode Island Current.
