Ørsted, Europe’s largest wind energy developer, is planning a major $9 billion capital raise after acknowledging that market conditions in the United States have disrupted its traditional financing model and sharply reduced the value of its American projects. The announcement sent the Danish company’s share price to a record low, wiping almost a third off its market value.
The company typically funds new offshore wind farms by selling partial stakes to investors once construction begins, but it says recent political developments in the US have made such transactions far more difficult. The shift follows President Donald Trump’s return to the White House and his directive, issued on his first day back in office, to review offshore wind permitting and leasing. The move has created uncertainty across the sector, compounding the effects of post-pandemic supply chain pressures and higher interest rates that have already driven up project costs.
Ørsted has two major projects in the US pipeline — Sunrise Wind off the coast of New York and Revolution Wind near Rhode Island — and says the capital injection will strengthen its balance sheet and ensure it can complete them while pursuing global expansion plans. The company aims to deliver enough offshore wind capacity to power more than eight million homes within two years.
The Danish government, which owns 50% of Ørsted, will support the fundraising through a rights issue. However, investor confidence has taken a hit, with the stock dropping to 220.5 kroner ($25.58) — below its 2016 IPO price.
CEO Rasmus Errboe described the situation as “extraordinary,” citing the combined impact of political headwinds in the US and ongoing macroeconomic challenges. He stressed that the fundraising would allow Ørsted to preserve the value of its current portfolio and position the company to seize future growth opportunities in offshore wind.
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IMAGE: Orsted
