Oersted (CSE:ORSTED) shares fell sharply after the Danish wind farm developer said its U.S. subsidiary has been ordered to halt work on a major offshore wind project near Rhode Island following a directive from the Interior Department’s Bureau of Ocean Energy Management (BOEM).
In a letter sent Friday, BOEM acting director Matthew Giacona instructed the company to cease all activities on the Revolution Wind project, which is located in federal waters, while the agency reviews concerns raised by a Trump administration–commissioned study.
The review comes after President Donald Trump suspended new federal wind leases shortly after taking office.
Orsted shares slumped more than 15% following the market open on Monday.
“BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas,” Giacona wrote.
Orsted confirmed receiving the stop order on Saturday. Revolution Wind, a joint venture with Global Infrastructure Partner’s Skyborn Renewables, began construction last year and is about 80% complete, with 45 of its planned 65 turbines already installed. The project is designed to supply power to more than 350,000 homes in Rhode Island and Connecticut.
“Revolution Wind is complying with the order and is taking appropriate steps to stop offshore activities, ensuring the safety of workers and the environment,” Orsted said. On Monday, the company added that “the stop-work order for Revolution Wind emphasizes the increased regulatory uncertainty for offshore wind in the U.S.”
Source :
https://www.investing.com/news/stock-market-news/orsted-told-to-halt-rhode-island-wind-project-by-us-regulator-4208142
