Backed by the Danish state, wind power leader Ørsted is gambling on a $9 billion fix for its debilitating Trump problem. The company’s stock plunged to a historic low after it announced the massive rights issue, blaming the US president’s policies for crippling its business model.
The problem is that Ørsted can no longer fund its American operations by selling project stakes, a method central to its global strategy. A hostile review of wind permitting initiated by the Trump administration has effectively destroyed the value of its US assets, forcing it to seek capital elsewhere.
This gamble comes at a time of high anxiety in the sector. The industry is still recovering from the economic shocks of the pandemic and rising interest rates, and Trump’s decision to halt a competitor’s approved project has deepened the sense of crisis. His long-standing opposition, once dismissed as rhetoric, is now a tangible threat.
The $9 billion fund is intended to create “financial robustness” and allow the company to weather the political storm. CEO Rasmus Errboe insists the move will enable Ørsted to realize the value of its portfolio, including key projects off New York and Rhode Island.
