Equinor will invest up to $940 million to maintain its 10% stake in Orsted during the Danish developer’s $9.4 billion rights issue.
The move comes as the offshore wind industry faces rising costs and regulatory setbacks under President Trump.
Norway’s sovereign wealth fund and the Danish state, Orsted’s largest shareholder, have also pledged support.
Equinor said on Monday it would participate in Orsted’s 60 billion Danish crown ($9.4 billion) rights issue, subscribing for shares worth up to 6 billion crowns ($940 million). The investment secures the Norwegian energy company’s 10% stake in Orsted and removes uncertainty around the developer’s financing plans after a turbulent year.
Shares in Orsted, down 85% from their 2021 peak, jumped 4.7% on the announcement. The commitment follows confirmation from Denmark’s government, which owns just over 50% of Orsted, that it will also participate in the capital raise. Norway’s sovereign wealth fund, holding around 3%, said it will vote in favor at the September 5 shareholder meeting.
“In response to the challenges facing offshore wind, the industry will see consolidation and new business models,” Equinor said in a statement. The company added it is seeking “closer industrial and strategic collaboration” with Orsted and plans to nominate a board candidate at the next annual general meeting.
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The offshore wind sector has been hit hard by inflation, supply-chain bottlenecks and shifting US policy. President Trump suspended licensing for offshore wind projects on his first day back in office in January and in April temporarily halted an Equinor project off New York, dealing another blow to developers.
Analysts said Equinor’s decision was effectively forced, as skipping the rights issue would have diluted its holding. RBC described the company as being “between a rock and a hard place.” Still, Equinor has called its stake in Orsted a long-term bet on offshore wind’s future.
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