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Orsted Secures Approval to Restart US Wind Project Previously Stopped by Trump

Orsted Secures Approval to Restart US Wind Project Previously Stopped by Trump

101 finance101 finance2026/01/12 21:42
By:101 finance

Judge Allows Orsted to Continue Rhode Island Wind Farm Amid Legal Dispute

Photographer: Adam Glanzman/Bloomberg

Orsted A/S has received court approval to proceed with its offshore wind farm near Rhode Island, despite a recent government order to halt work. This decision, delivered by US District Judge Royce C. Lamberth in Washington, represents a significant victory for the Danish energy company as it contests the Trump administration’s latest efforts to restrict renewable energy initiatives.

The Revolution Wind project, which aims to supply electricity to hundreds of thousands of homes in Rhode Island and Connecticut, is nearly finished—about 90% complete. Judge Lamberth determined that stopping construction during the ongoing legal battle would cause irreversible damage to the project.

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On December 22, the US Interior Department issued a 90-day suspension for five offshore wind projects along the East Coast, citing concerns over national security. This move, which has sparked several lawsuits, is part of former President Donald Trump’s broader push to support fossil fuels and slow down the expansion of renewable energy.

During a two-hour court session, Judge Lamberth questioned whether the government’s stated security concerns were genuine, noting that officials waited nearly a month after identifying supposed risks before issuing the stop-work order. He suggested that the delay undermined the claim of an emergency situation.

“I am not convinced there is any real emergency here,” Lamberth stated from the bench. He also indicated that the government’s actions might have violated the Administrative Procedure Act, which requires agencies to provide clear explanations for major policy changes and allow for public input.

The White House did not immediately comment on the ruling.

Orsted is also pursuing legal action to restart its offshore wind project near New York. Other companies, including Equinor ASA and Dominion Energy, have filed similar challenges regarding their own wind developments. Additionally, the attorneys general of Rhode Island and Connecticut have taken legal steps to block the Revolution Wind suspension.

The $5 billion Revolution Wind project was first halted in August, causing significant disruption as it neared completion. Although a federal judge allowed work to resume in September, a second suspension was imposed in December, with officials citing potential interference with radar systems from the wind turbines.

Financial Impact and Broader Industry Effects

Project developers estimate that the December suspension is costing them approximately $1.44 million each day, with losses from the initial pause totaling around $105 million.

These suspensions are part of a broader campaign by the Trump administration to slow the growth of the wind energy sector and reverse climate policies from the previous administration. Early in his term, Trump signed an executive order halting new wind projects on federal property—a move that was recently overturned by a federal court.

Revolution Wind LLC, jointly owned by Orsted and Global Infrastructure Partners, argues that the administration’s abrupt halts to construction violate their constitutional rights and federal law, especially after years of planning and coordination with government agencies.

On December 22, the Interior Department announced the suspension of leases for all five major offshore wind projects under construction in the US, including the 700-megawatt Revolution Wind, which is expected to provide power to about 350,000 homes.

The following day, the governors of New York, Massachusetts, and Rhode Island released a joint statement criticizing the pause, warning that it would undermine energy independence, increase costs for consumers, and result in the loss of thousands of jobs.

Case Reference: Revolution Wind v. Burgum, 25-cv-2999, US District Court, District of Columbia (Washington).

Reporting assistance by Jennifer A. Dlouhy.

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