Shares of Danish renewable energy company Orsted (ORSTED) plunged over 16% last month when the U.S. Interior Department halted its massive Revolution Wind project off the coast of Rhode Island.
The Bureau of Ocean Energy Management (BOEM), which is part of the Interior Department, sent a letter to Revolution Wind LLC with a work-stoppage order, citing unspecified “concerns related to the protection of national security interests” of the U.S.
Revolution Wind is the subsidiary of Orsted that is overseeing the project in Rhode Island.
However, Judge Royce Lamberth on Monday granted Orsted’s request for a temporary injunction, saying 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.
Orsted said in a statement responding to the work stoppage in August that the project was 80% complete, with all offshore foundations installed and 45 out of 65 wind turbines also already installed.
Lamberth said in his ruling that Orsted "demonstrated likelihood of success on the merits" of its work and that the company “would likely suffer irreparable harm if the stop-work order remained in place while the litigation plays out,” according to CNBC.
The company has said that it has invested $5 billion in the project already and would incur more than $1 billion in costs if it were canceled.
“Orsted is investing into American energy generation, grid upgrades, port infrastructure, and a supply chain, including US shipbuilding and manufacturing extending to more than 40 states,” the company said in a statement after the project was halted. “Revolution Wind is already employing hundreds of local union workers supporting both on and offshore construction activities.”
The project is expected to supply power to over 350,000 homes in both Rhode Island and Connecticut.
Orsted released a statement on Monday after Lamberth’s ruling indicating that “Revolution Wind will resume impacted construction work as soon as possible, with safety as the top priority.”
“Revolution Wind will continue to seek to work collaboratively with the US Administration and other stakeholders toward a prompt resolution,” the company added.
Orsted’s stock gained nearly 4% on Tuesday.
Wind Revolution sued the Trump administration earlier this month in the U.S. District Court for the District of Columbia, arguing that the White House lacked legal authority to halt the project.
The company was soon joined by the attorneys general for Connecticut and Rhode Island, who also sued the administration.
The Trump administration can appeal Lamberth’s ruling and it appears it plans to do so.
“President Trump was elected with a resounding mandate to end Joe Biden’s war on American energy and restore our country’s energy dominance — which includes prioritizing the most effective and reliable tools to power our country,” White House spokesperson Anna Kelly told Politico. “This will not be the final say on the matter.”
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