Danish offshore wind power group Orsted slumped on Monday as the company announced plans to raise 60 billion kroner ($9.4 billion) by selling new shares, further deepening the firm's woes due to U.S. President Donald Trump's opposition to the sector and renewable energy in general.
Shares in Orsted tumbled 28% on the Copenhagen stock exchange following its announcement.
The company had plans to sell a stake in its delayed Sunrise Wind project off the coast of New York.
But, Orsted said in a statement Monday that it was "not possible" to complete the partial divestment following "the recent material adverse development in the U.S. offshore wind market."
The entire sector faces a major challenge in the U.S. after Trump froze federal permitting and loans for all offshore and onshore wind projects.
Orsted said it would not be able to sell the Sunrise Wind stake on terms that would supply the company with the necessary funds to support its business plan.
"Orsted and our industry are in an extraordinary situation with the adverse market development in the U.S. on top of the past years' macroeconomic and supply chain challenges," Orsted CEO Rasmus Errboe said in a statement.
The company said the plans to sell new shares were supported by the Danish state, which is a majority shareholder.
Empire Wind, another massive offshore wind power project off the coast of New York being constructed by Norway's Equinor, was temporarily halted by the Trump administration in mid-April.
Equinor said in July that the project had lost nearly $1 billion in value due to regulatory changes and tariffs.
Orsted was once considered a success story.
In less than a decade – from 2010 to 2019 – it transitioned from a traditional energy company that relied on fossil fuels for energy production to one that derived 86% of its energy from renewable sources.
It was the first company to invest massively in offshore wind power in the U.S., securing fixed-price projects in a low-rate environment.
However, it was dealt a $4 billion blow in 2023 when it cancelled its Ocean Wind 1 and 2 projects, which were due to be installed off the coast of New Jersey.
In May, Orsted said it was shelving plans to build a massive wind farm off the U.K. coast due to rising costs.
