The US Department of the Interior has ordered all activities at Ørsted's wind project off the coast of Rhode Island to be paused.
The Department of the Interior's Bureau of Ocean Energy Management (BOEM) has issued an order requiring the Danish energy company to halt all ongoing activities.
This is due to concerns that have arisen during a review of offshore wind turbine projects in federal waters.
The order, dated August 22, states that the company "may not resume activities until BOEM announces that it has completed the necessary review."
The offshore wind farm, called Revolution Wind, was scheduled to be operational next year.
Ørsted announced in a press release on Saturday night that the company will comply with the order.
At the same time, the company will try to enter into dialogue with the relevant licensing authorities to obtain the necessary clarification so that Revolution Wind can be put into operation in the second half of 2026.
Ørsted is also assessing the potential economic consequences of the latest development and considering a number of scenarios, including possible legal action, the company writes.
This is not the first time that the US government has created uncertainty around the construction of offshore wind turbine projects after Donald Trump was sworn in as president in January.
Trump has repeatedly criticized wind turbines for being an unreliable source of energy and being unsightly to have standing in the landscape.
Back in April, the US government put an end to the Norwegian company Equinor's construction of the offshore wind farm Empire Wind off the coast of New York.
In May, Equinor was allowed to continue working on the project, which is expected to be completed in 2027.
Ørsted builds and operates wind farms. When the wind farms are in operation, Ørsted typically sells off 50 percent of the farms to raise capital to build new farms.
Earlier in August, Ørsted announced a share issue of 60 billion kroner for major investments in the coming years.
The announcement caused Ørsted shares to fall by 30 percent in a single day, as shareholders had expected that future investments would be financed by selling off ownership interests in the American offshore wind farm Sunrise Wind, which is being built.
The Danish state owns 50.1 percent of Ørsted.
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