Revolution Wind, a 700-MW offshore wind farm close to being completed and set to supply energy to Rhode Island and Connecticut, stopped work Friday in compliance with an order from the Department of the Interior’s Bureau of Ocean Energy Management, said project developer Ørsted.
Ørsted, which owns the project in a 50/50 joint venture with Global Infrastructure Partners’ Skyborn Renewables, said in a Friday release that the project is fully permitted and 80% complete with “all offshore foundations installed and 45 out of 65 wind turbines installed.”
“Ørsted is evaluating all options to resolve the matter expeditiously,” the company said. “This includes engagement with relevant permitting agencies for any necessary clarification or resolution as well as through potential legal proceedings, with the aim being to proceed with continued project construction towards [a commercial operations date] in the second half of 2026.”
“From our stakeholder conversations this weekend, we understand that there has been little/no communication between the states of Rhode Island and Connecticut regarding Revolution Wind ahead of Friday's halt work order,” said investment bank Jefferies in a Monday note. “The key investor and stakeholder question is what deal can be struck to restart construction like Empire Wind but there is no obvious answer.”
The Trump administration issued a similar stop work order on the 810-MW Empire Wind 1 project offshore New York in April. The order was revoked and the project allowed to continue after New York Governor Kathy Hochul negotiated with the administration.
Interior Secretary Doug Burgum said afterward that he was “encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity” for natural gas.
Reuters reported that BOEM’s Acting Director Matthew Giacona said in a letter that the order is intended to “protect U.S. national security” and prevent "interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas.”
Ørsted said Revolution Wind is “complying with the order and is taking appropriate steps to stop offshore activities, ensuring the safety of workers and the environment,” as well as “evaluating the potential financial implications of this development, considering a range of scenarios, including legal proceedings.”
The company’s shares tumbled to an all-time low of $9.31 following the news. Ørsted said in a Monday announcement that it plans to move ahead with a $9.4 billion rights issue to shore up its capital structure.
“The stop-work order for Revolution Wind emphasizes the increased regulatory uncertainty for offshore wind in the U.S.,” Ørsted said. “The planned rights issue has been sized to provide the required strengthening of Ørsted’s capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Ørsted ‘s U.S. offshore wind portfolio.”
