Ørsted sues US over offshore wind project stop-work order

Danish energy firm Ørsted and its partner Skyborn Renewables have initiated legal action in the DC District Court to overturn a stop-work order affecting their Revolution Wind project. The project, which was 80% complete at the time of the order, is critical for energy supply in Rhode Island and Connecticut, both of which are also pursuing legal remedies against the federal government. The halt comes after significant progress, including the installation of 45 out of 65 wind turbines and the completion of all offshore foundations.

Project Status and Economic Impact

The Revolution Wind project was on track to be completed next year, with substantial investments already made. Ørsted and Skyborn have reported expenditures of approximately $5 billion, with an additional $1 billion at risk if the stop-work order remains in effect. This ambitious project aims to generate enough energy to power over 350,000 homes and supports more than 2,000 jobs across the United States.

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In a joint statement, the attorneys general of Rhode Island and Connecticut emphasized the project’s potential to save ratepayers hundreds of millions of dollars over the next two decades. They are committed to restoring the rule of law and protecting the economic interests of their states, asserting that the federal government must uphold its commitments. Revolution Wind has expressed its intention to collaborate with federal authorities and stakeholders to resolve the issue promptly. However, they argue that the Bureau of Ocean Energy Management (BOEM) lacked the legal authority to issue the stop-work order, which they believe violates applicable laws. The ongoing litigation is deemed necessary to mitigate the substantial harm posed by the order’s continuation.