Federal courts greenlit offshore wind energy projects
At the end of last year, the US Department of the Interior announced that it was halting all offshore wind leases in the United States, citing "national security risks identified by the Department of War in recently completed classified reports."
The orders, which were sent by the Interior Department's Bureau of Ocean Energy Management (BOEM), suspended all large-scale offshore wind projects for 90 days. BOEM reserved the right to extend the 90-day suspension.
The orders halted five projects in total. It was the second time the Trump administration paused offshore wind energy projects in the US, having done so previously in August.
Danish energy company Orsted (ORSTED) is overseeing two of the five projects, including the massive Revolution Wind project off the coast of Rhode Island, which Orsted noted was 80% complete with all offshore foundations installed and 45 out of 65 wind turbines also installed.
A federal judge granted Orsted a temporary injunction in September after it sued BOEM, allowing construction of Revolution Wind to resume, with the judge stating in his ruling that the Interior Department did not present “any factual findings” to back up its claim that the project presented any national security risks, as Politico reported.
Although the Trump administration shut down all the offshore wind projects again in December, federal judges have allowed four of the projects to resume in new rulings this year, including Revolution Wind.
Orsted said that the court's ruling will allow it "to restart impacted activities immediately," while its lawsuit against BOEM progresses.
"The Project will resume construction work as soon as possible, with safety as the top priority, and to deliver affordable, reliable power to the Northeast," the company said in a statement.
Orsted added that it "will determine how best it may be possible to work with the US Administration to achieve an expeditious and durable resolution."
Shares of the Danish company have gained 25.7% to start the year.
On Tuesday, a federal judge allowed a $4.5 billion wind farm off the coast of Martha's Vineyard, Massachusetts called Vineyard Wind to resume, with Judge Brian E. Murphy of the U.S. District Court for the District of Massachusetts stating that the Trump administration had failed to “adequately explain or justify the decision to halt construction.”
Vineyard Wind was 95% completed when BOEM ordered it halted in December.
The US District Court for the Eastern District of Virginia has also granted Dominion Energy (D) an injunction that allows construction to resume on its Coastal Virginia Offshore Wind (CVOW) project, which would become the largest wind farm in the country when it is built.
Dominion has said that it has spent about $8.9 billion on CVOW, which is 70% complete. The company also noted that the Trump administration’s stop-work order was costing it $5 million a day.
"Our team will now focus on safely restarting work to ensure CVOW begins delivery of critical energy in just weeks," the company said in a statement. "While our legal challenge proceeds, we will continue seeking a durable resolution of this matter through cooperation with the federal government."
Dominion's stock is up 3.6% to start the year.