A $9 billion shockwave originating from Danish wind firm Ørsted is rocking the global renewable energy sector. The company’s stock crashed to a historic low after it announced an emergency fundraising plan, a direct consequence of the Trump administration’s move to freeze the US offshore wind market.
The crisis was triggered by a policy that halted all new wind project permitting, which immediately dismantled Ørsted’s financial model. The company’s reliance on selling project stakes to fund its operations—a standard industry practice—became its Achilles’ heel in the face of this political attack.
The “extraordinary” nature of the crisis was underscored by CEO Rasmus Errboe, who cited the dual impact of US political opposition and supply chain issues. The massive fundraising target reveals the scale of the financial damage and the uncertainty ahead.
With the backing of the Danish state, Ørsted is attempting to ride out the shockwave. However, the event has sent a powerful message to investors worldwide about the political risks of clean energy projects, threatening to slow the pace of the global transition.