Citing an “extraordinary situation,” Ørsted’s chief executive Rasmus Errboe has overseen the announcement of a $9 billion fundraiser as the company’s stock collapsed to its lowest point in history. The Danish wind power leader squarely blames the Trump administration for creating adverse market conditions that have crippled its financial strategy.
The company’s core problem lies in the United States, where it can no longer execute its business model of selling project stakes to cover development costs. Ørsted explicitly stated that “recent material developments” under the Trump White House have slashed the value of its US assets, blocking this crucial financing path for its eastern seaboard projects.
The situation is worsened by the fact the industry is still recovering from post-pandemic supply chain issues and high interest rates. Trump’s long-held personal dislike for wind farms, stemming from a dispute over his Scottish golf course, has now translated into damaging federal policy, creating a chilling effect across the sector.
The Danish government, which owns half of Ørsted, is supporting the massive rights issue to provide “financial robustness.” The funds are critical for the company to move forward with its planned projects, including Revolution Wind and Sunrise Wind in the US, and to maintain its global growth trajectory.