The valuation of Danish wind giant Ørsted has been slashed after Donald Trump’s long-standing anti-wind rhetoric officially became policy. The company’s stock plummeted by nearly a third after it announced a $9 billion capital raise to deal with the fallout.
The company’s crisis was triggered when the Trump administration ordered a review of all offshore wind permitting, a move that decimated the value of US-based projects. This policy blocked Ørsted’s ability to finance its new eastern seaboard development by selling a stake, a critical part of its business model.
Trump’s rhetoric, which includes refuted claims about wind being expensive and harmful to birds, has now created a hostile investment climate. This comes on top of existing industry-wide struggles with supply chains and rising interest rates, creating a toxic mix for developers.
The Danish government is supporting the massive fundraising effort to stabilize its national energy champion. CEO Rasmus Errboe described the “extraordinary situation,” stating the funds are needed to reinforce the company’s capital structure amidst the turmoil.