Trump puts a stop to new offshore wind farm projects, shares in European developers fall
Donald Trump, who was sworn in as president of the United States last week, got straight to work on his first day in office. One of his first moves in his second term was to suspend leases of federal areas for offshore wind farm development. The move also affected European renewable energy developers, whose shares fell in response.
The new US president, Donald Trump, has long been known for his support for the fossil fuel industry and his dislike of renewable energy. His first moves in office are therefore hardly surprising, although their impact extends beyond US borders. Last Monday, Trump suspended the leasing of additional areas to offshore wind farm developers, saying, according to Reuters, that wind turbines are ugly, expensive and harmful to wildlife.
The offshore wind industry has faced challenges in recent years, particularly a substantial increase in the cost of developing new projects. Rising costs and delays in planning and permitting have recently led to several projects being cancelled. One example is the suspension of projects off the US coast in autumn 2023, which led to billions in losses and a fall in shares of Danish developer Ørsted.
Ørsted, or rather the value of its shares, was also hit by Donald Trump’s moves last week. The company’s shares fell 17%, according to Reuters, after it recorded a loss of nearly $1.7 billion.
Analysts interviewed by the agency said one of the main reasons was delays and rising costs at the Sunrise Wind project, which is set to become the largest offshore wind farm in US waters. The company’s share price has already fallen by more than 80% over the past four years.
“Ørsted now has some assets in the US that are worthless. If nothing is built there because of Trump, Ørsted can neither sell them nor use the leases,” Jacob Pedersen, an analyst at Danish bank Sydbank, told Reuters.
Shares in other European developers and technology suppliers also fell, although the declines were in the low single digits.
Translation disclaimer
This article is a machine translation of the Czech original and has not yet been fully reviewed. In case of any doubt, please refer to the Czech version.
