The Ripple Effect: How a US Permit Review Caused a Meltdown at Ørsted

The ripple effect of a single US policy—a review of wind permits—has caused a full-scale meltdown at Danish energy giant Ørsted. The company’s market value plunged by a third after it was forced to announce a $9 billion emergency fundraiser to deal with the consequences.
The policy, ordered by President Trump, immediately devalued Ørsted’s US assets and blocked its ability to sell a stake in its new eastern seaboard project. This financing method is the lifeblood of its development strategy, and its blockage created a sudden and massive financial crisis.
The ripples of this decision are spreading through an industry already on edge from supply chain woes and high interest rates. The subsequent halt of a rival’s approved project has turned ripples of concern into waves of panic.
With the backing of the Danish state, Ørsted is now attempting to contain the meltdown. The $9 billion fundraiser is intended to provide “financial robustness” and allow the company to navigate the “extraordinary situation” it now finds itself in.