Danish energy company Orsted saw its shares plunge as much as 19% on Monday in Copenhagen to a record low after the U.S. administration ordered a halt last Friday to construction of the nearly finished Revolution Wind project off Rhode Island. The firm said it will continue with plans to raise about 60 billion Danish kroner from investors—half of which would come from Danish taxpayers—in what would be the largest equity sale in the European energy sector in more than a decade.

The U.S. Bureau of Ocean Energy Management stop order affects a project Jefferies estimates cost $4 billion and is roughly 80% complete, with 45 of 65 turbines already installed. Analysts say the pause threatens the success of Orsted’s planned rights issue. "It’s a huge obstacle when it comes to raising capital," said Sydbank analyst Jacob Pedersen. AlphaValue’s Pierre-Alexandre Ramondenc called the action "political hostage-taking by the U.S. administration given the advanced stage of the project."

Orsted said the planned rights issue was sized to strengthen the company’s capital structure and that it is assessing all options, including discussions with regulators and possible legal action, to resolve the matter quickly. The company has faced prior strains from high supply-chain costs, project cancellations, write-downs and management changes. U.S. moves to block offshore projects are not new: the administration earlier halted Equinor’s Empire Wind before reaching a later accommodation. Governors of Connecticut and Rhode Island are working to overturn the decision; Connecticut Governor Ned Lamont said the move "will raise electricity costs and contradicts everything the administration told us." Shares of Orsted are down more than 45% year-to-date and about 80% over five years, with a historic 29% drop on August 11 linked to the rights issue announcement. #Orsted #WindEnergy #Renewables #Trump #FiatNews