Trump stops Ørsted wind project offshore Rhode Island in latest blow to industry

[Wind turbine from aerial view, Drone view at windpark westermeerdijk a windmill farm in the lake IJsselmeer the biggest in the Netherlands,Sustainable development, renewable energy]
fokkebok/iStock via Getty Images

The Trump administration said Friday that Denmark's Ørsted (OTCPK:DNNGY [https://seekingalpha.com/symbol/DNNGY]) must halt all activities [https://www.reuters.com/legal/litigation/us-halts-work-orsted-offshore-wind-project-off-rhode-island-2025-08-22/] related to its Revolution Wind project off the coast of Rhode Island, which is under construction and was expected to become operational next year.

The Bureau of Ocean Energy Management issued an order requiring Ørsted (OTCPK:DNNGY [https://seekingalpha.com/symbol/DNNGY]) to halt ongoing activities on the project to address unspecified national security concerns that have arisen during a review of the project, and the company "may not resume activities until BOEM informs you that BOEM has completed its necessary review."

Earlier this week [https://www.reuters.com/business/energy/us-opens-national-security-probe-into-imported-wind-turbines-components-2025-08-21/], the U.S. Commerce Department said it opened a Section 232 national security investigation into the import of wind turbines and components, and added the items to list of products that will face 50% tariffs on their aluminum and steel content.

The U.S. wind industry is heavily dependent on imports for parts such as blades, drivetrains and electrical systems, with roughly two-thirds of the value of a typical U.S. wind turbine imported, according to Wood Mackenzie.

The Revolution Wind project, which would provide power to 350K homes in Rhode Island and Connecticut, was approved by the Biden administration in 2023, and the move to stop the project is the latest blow to the wind industry from the Trump administration's efforts to roll back Biden-era climate policies.

U.S. energy projects worth $18.6B have been canceled so far this year [https://www.ft.com/content/8fc81250-33ef-486e-9322-15548ee897a7], compared with just $827M in 2024, the _Financial Times_ reported this week, citing Atlas Public Policy's Clean Economy Tracker.

Analysts say that while demand for energy to power the AI boom will only grow, the U.S. risks irrevocably damaging its renewables sector, which sometimes provides the cheapest and fastest source of energy to deploy.

"Renewables can be built and connected in a matter of a year or two, in a way that meets data center developers' timelines," Advait Arun, an energy policy analyst at the Center for Public Interest, told _FT_. "If you’re ignoring renewables, then you're missing a key part of the equation."

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MORE ON ØRSTED AND WIND ENERGY

* Ørsted Q2 2025 Earnings Call Presentation [https://seekingalpha.com/article/4813060-orsted-a-s-2025-q2-results-earnings-call-presentation]
* FAN: I Expect A Downdraft Later This Year [https://seekingalpha.com/article/4806641-fan-expect-downdraft-later-this-year]
* QCLN: High Valuations In The Clean Tech Rally [https://seekingalpha.com/article/4813866-qcln-etf-high-valuations-in-clean-tech-rally]