Green energy giant Ørsted has stumbled badly, with its stock crashing after it blamed the United States for having “derailed” its business. The company is now seeking an emergency $9 billion from shareholders to cope with the crisis sparked by the Trump administration.
The Danish firm’s business model, which involves covering costs by selling stakes in projects once they are underway, has been broken. It cited “recent material developments in the US” as the reason it could not raise funds for its new eastern seaboard wind farm, as Trump’s policies have crushed its value.
This stumble comes as the industry is already on unsteady footing due to post-pandemic supply chain woes and rising interest rates that have made new builds more expensive. Trump’s personal and long-running campaign against wind power has now become a major source of financial instability for global firms.
The Danish government is supporting the $9 billion rights issue. The company’s CEO, Rasmus Errboe, stated that in this “extraordinary situation,” the capital is crucial to strengthen its financial position and proceed with key projects like Sunrise Wind and Revolution Wind.