It was a black day for green energy as Danish champion Ørsted saw its stock plummet to an all-time low, a stark sign of US political risk materializing. The historic crash followed the company’s announcement that it needs to raise an emergency $9 billion due to hostile policies from the Trump administration.
The risk became reality when the administration froze the US offshore wind market via a sweeping review of permits and leases. This action sabotaged Ørsted’s ability to finance projects by selling equity, a crucial mechanism that has now been blocked.
Chief Executive Rasmus Errboe described the situation as “extraordinary,” emphasizing how the combination of political antagonism from the US and supply chain difficulties created an untenable position. The emergency fundraising is a direct response to this materialized threat.
The Danish government, a 50% owner, is supporting the rescue. However, this black day for Ørsted serves as a brutal lesson for the entire industry on the severe consequences of political volatility, potentially altering investment strategies for years to come.