Denmark’s Ørsted Secures Approval for $9.4 Billion Rights Issue Amid Trump’s Offshore Wind Crackdown
In a pivotal move to shore up its finances, Danish renewable energy giant Ørsted won shareholder approval on September 5, 2025, for a $9.4 billion emergency rights issue, a lifeline aimed at navigating a storm of challenges exacerbated by U.S. President Donald Trump’s aggressive opposition to offshore wind projects. The decision, greenlit at an extraordinary general meeting in Copenhagen, comes as Ørsted grapples with a stop-work order on its nearly completed Revolution Wind project off Rhode Island, alongside industry-wide supply chain woes and a recent profit warning. As the world’s largest offshore wind developer fights to maintain its leadership in the green transition, this capital raise underscores both its resilience and the high stakes of political interference in renewable energy.
Key Details of the Rights Issue and Trump’s Impact
Ørsted’s rights issue, valued at 60 billion Danish kroner ($9.4 billion), was approved by a two-thirds majority of shareholders, including the Danish state, which holds a 50.1% stake and committed to maintaining its majority share. The funds aim to bolster the company’s balance sheet, finance the completion of 8.1 gigawatts of offshore wind projects by 2027, and mitigate risks from U.S. market uncertainties. The announcement followed a turbulent month: On August 22, the Trump administration’s Bureau of Ocean Energy Management (BOEM) issued a stop-work order on the $6.2 billion Revolution Wind project, 80% complete with 45 of 65 turbines installed, citing vague “national security concerns.” Ørsted, in a joint venture with Skyborn Renewables, responded by suing the administration on September 4, alleging the order was “arbitrary and capricious” and issued under political pressure.
The financial strain is palpable. Ørsted’s shares plummeted 17% to a record low on August 25 after the stop-work order, wiping nearly $8 billion off its market value, and have fallen 85% since their 2021 peak. The company also cut its 2025 profit outlook on September 5 due to low wind speeds in July and August and delays in a Taiwan project, adding pressure to its BBB- credit rating, the lowest investment-grade tier, as warned by S&P Global. The rights issue, equivalent to half Ørsted’s market value as of August 8, is critical to avoiding a junk rating downgrade, which could hinder future financing.
Trump’s “wind war” has intensified the crisis. Since taking office in January 2025, he suspended new offshore wind leases and targeted existing projects, including a brief halt on Equinor’s Empire Wind in April, reversed after significant lobbying. The Revolution Wind stoppage, affecting a project set to power 350,000 homes, has driven up costs by 60-70 million crowns weekly due to idle specialized vessels. Ørsted’s inability to sell stakes in its Sunrise Wind project off New York, after potential co-investors pulled out citing U.S. market risks, further necessitated the capital raise.
Voices from Leadership and Analysts
Ørsted’s CEO, Rasmus Errboe, emphasized the strategic necessity of the rights issue, stating at a September 4 EU energy ministers’ meeting, “We do this to ensure we can continue to lead the expansion of offshore wind in our core markets in Europe for the critical years to come.” Company chair Lene Skole acknowledged the long road ahead, telling shareholders, “It’s going to be a tough journey to reerect Ørsted,” with S&P warning the funds may only delay credit pressures by three to six months. Norwegian energy giant Equinor, a 10% shareholder, pledged up to $941 million to the rights issue and will nominate a board candidate, signaling confidence despite the U.S. setbacks.
Analysts remain cautious. Sydbank’s Jakob Pedersen called the capital increase “the only option left in their toolbox,” noting Ørsted’s dire financial state. Pierre-Yves Gauthier of AlphaValue suggested Trump’s actions might be a geopolitical tactic tied to his interest in Greenland, putting Ørsted “in the crossfire” of U.S.-Denmark tensions. Deepa Venkateswaran of Bernstein described the Revolution Wind halt as “out of the blue,” warning that further U.S. uncertainty makes Ørsted a risky investment.
Background Context
Ørsted, once DONG Energy, transformed from an oil producer to a global offshore wind leader, with its market value soaring fivefold between its 2016 IPO and 2021 peak. It operates 9.9 gigawatts of offshore wind capacity, producing 18.6 terawatt-hours in 2024, alongside onshore wind, solar, and energy distribution. The company’s U.S. ambitions, however, have been hit hard by supply chain delays, inflation, and shifting subsidies, leading to scrapped projects and hefty impairments. Trump’s hostility, rooted in his view of wind power as expensive and harmful to wildlife, has compounded these woes since his January 2025 inauguration, with actions like canceling $679 million in wind-related infrastructure grants.
Denmark’s 50.1% ownership ties Ørsted to national interests, with Finance Minister Nicolai Wammen calling it “extremely important” for energy independence from Russia. Yet, U.S.-Denmark relations are strained, with Trump’s Greenland ambitions and allegations of “covert influence operations” adding geopolitical complexity. Ørsted’s lawsuit against the Trump administration, filed in the U.S. District Court for the District of Columbia, seeks to lift the Revolution Wind stop-work order, with Rhode Island and Connecticut also suing, alleging the decision violates federal law.
Impact and Next Steps
The rights issue provides Ørsted breathing room to complete projects like Sunrise Wind and maintain its European dominance, but it dilutes shareholder value, with Jefferies analysts noting “substantial” near-term impacts. The U.S. legal battle could set a precedent for offshore wind, with a favorable ruling potentially restarting Revolution Wind by late 2025, though delays cost $5 billion already invested. If Trump’s policies persist, Ørsted may pivot further to Europe or Asia, risking its U.S. foothold. Next steps include the lawsuit’s progression, with a preliminary hearing expected soon, and Ørsted’s efforts to secure new partners for Sunrise Wind. Denmark may also engage diplomatically to counter Trump’s pressure, possibly leveraging Greenland talks.
Conclusion
Ørsted’s $9.4 billion rights issue marks a critical step to weather Trump’s anti-wind campaign and global industry challenges, reaffirming its commitment to the green transition. Yet, with legal battles looming and U.S. projects in jeopardy, the company faces an uphill climb. For investors and renewable energy advocates, the takeaway is clear: Ørsted’s resilience hinges on navigating political headwinds, but the fight for offshore wind’s future is far from over.