The Ørsted share price rose 4.9 percent this morning after news that work on the Revolution Wind offshore wind farm off the US east coast could continue.
This means investors are breathing a little easier on behalf of the energy company after a judge at the federal court in Washington gave the green light to resume work late Monday evening Danish time.
The US Department of the Interior announced shortly before Christmas that work on all offshore wind projects off the US coast would be put on hold for 90 days. The reason was allegedly concerns about the importance of the wind turbines for the ability to monitor American airspace via radar.
However, the judge did not believe that there was documentation for this, and therefore the construction stoppage was initially averted.
Analyst: Sooner electricity production will probably reduce the risk of bottlenecks
And that is good news for Ørsted, says Jacob Pedersen, head of equity research at AL Sydbank.
- A few more weeks of work on Revolution Wind will mean that the project can deliver the first electricity, even though the completion date is not expected until the second half of 2026, he writes in a comment.
Jacob Pedersen expects that when the first Revolution Wind is operational, the risk of more bottlenecks from the Trump administration will decrease significantly.
However, this does not mean that the hardships in the US are over for Ørsted. The company is also involved in the construction of the Sunrise Wind offshore wind farm, which is still affected by construction halts.
The offshore wind turbines have not progressed nearly as far here as at Revolution Wind, and therefore there is still a risk that the American authorities will succeed in blocking the plant from ever coming into operation, Jacob Pedersen estimates.
The Ørsted share is trading around 135 on Tuesday.
/ritzau/
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