Danish offshore wind developer Ørsted has been cleared to restart work on its nearly complete Revolution Wind project after a federal judge blocked the Trump administration’s order to halt construction. The ruling represents a major victory for Ørsted and a blow to President Donald Trump’s efforts to curtail the offshore wind industry.
The U.S. Interior Department’s Bureau of Ocean Energy Management (BOEM) issued a stop-work order on August 22, halting progress on Revolution Wind, a 704 MW wind farm located 15 miles off the coasts of Rhode Island and Connecticut. The order came despite the project being fully permitted and already 80% complete. Revolution Wind, developed by Ørsted and its partner Skyborn Renewables, is designed to supply enough electricity to power more than 350,000 homes.
Ørsted immediately challenged the order in federal court, arguing that it was “arbitrary, capricious, unlawful and issued in bad faith.” According to Reuters, the halt had been costing the company $2 million per day, putting its $5 billion investment at risk. Rhode Island and Connecticut also filed suit, underscoring the political stakes in New England, where the project is central to state-level clean energy targets.
On Monday, U.S. District Judge Royce Lamberth granted Ørsted’s request for a preliminary injunction. Lamberth, a senior judge appointed by Ronald Reagan, found that the Trump administration had offered “contradictory reasons” for halting the project and described the shifting explanations as “the height of arbitrary and capricious” conduct.
The judge emphasized that Revolution Wind had reasonably relied on government assurances and that the sudden reversal imperiled its ability to meet contractual deadlines. “There is no doubt in my mind of irreparable harm to the plaintiffs,” he wrote.
The ruling prevents Interior from enforcing the stop-work order while litigation continues, allowing construction to move forward.
The Trump administration has made no secret of its opposition to offshore wind, with Interior Secretary Doug Burgum recently declaring there was “no future” for the industry under Trump because it was “too expensive and not reliable enough.” At the Gastech conference in Milan earlier this month, Burgum suggested that as many as five offshore projects currently under construction could face review.
However, the court’s decision signals that projects that are already fully permitted and under construction may have stronger legal standing. For Ørsted, the ruling comes at a critical juncture. The company said it would “resume impacted construction work as soon as possible, with safety as the top priority.” Its U.S.-listed shares rose nearly 9% following the decision.
Connecticut Governor Ned Lamont praised the ruling, calling it “extremely encouraging for workers and our energy future.” The Biden administration had previously sought to expand offshore wind capacity, and the outcome of the case could influence how quickly the U.S. builds momentum in a sector where Europe and Asia currently lead.
By Charles Kennedy for Oilprice.com
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