Orsted’s share price surged on Tuesday after a US federal court judge granted the developer’s request for an injunction against a Trump administration stop-work order, allowing work to resume on the 704MW Revolution Wind.
The Danish company’s shares were up around 10% in early morning trading with those gains paired back in later trading.
Orsted’s stock has been battered in recent months due to a series of problems in its US business with its share price down around 35% year-to-date.
Analysts said the court ruling is a boost for the developer currently in the process of an €8bn rights issue to raise funds for its other US project, the 924MW Sunrise Wind development.
Judge Royce C. Lamberth’s ruled on Monday to grant an injunction against the Trump administration.
Lambeth wrote in his ruling: “Revolution Wind has demonstrated likelihood of success on the merits of its underlying claims, it is likely to suffer irreparable harm in the absence of an injunction, the balance of the equities is in its favor, and maintaining the status quo by granting the injunction is in the public interest.”
The project had been ordered stopped by the Trump administration on 22 August.
US offshore wind trade group Oceantic Network President Liz Burdock said in a statement: “Today’s decision allowing work to resume on Revolution Wind is welcome news for the hundreds of skilled workers who can now return to their jobs while the legal process continues.
“Revolution Wind is critical to securing New England’s electric grid, lowering energy costs for businesses and families, strengthening the local supply chain, and achieving energy independence.”
Orsted revealed earlier this month that the shutdown was costing the project roughly $15 million a week.
Orsted said in a statement: “Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority.”
The underlying lawsuit against the stop-work order will continue in federal court.
“Revolution Wind will continue to seek to work collaboratively with the US Administration and other stakeholders toward a prompt resolution,” the Danish developer said Monday.
Connecticut Gov. Ned Lamont, whose state is contracted to buy power from the project alongside Rhode Island, praised the ruling: “Today’s ruling allowing Revolution Wind to resume work is extremely encouraging for workers and our energy future.
“We will continue to engage with the federal government on a durable path forward for this project and on shared energy priorities.”
Source: reNews
