“Windmills are ugly, expensive and they harm wildlife,” Trump said as he suspended new federal leases for offshore wind energy. The decision caused European renewable energy companies with investments in the US to lose part of their capital.
Shares of European wind companies fell after President Donald Trump removed support for offshore wind in the United States on his first day in office.
Orsted led the losses, reporting a 17% drop due to problems at its Sunrise Wind project and deteriorations in offshore leases.
Trump suspended new federal leases for offshore wind pending an environmental and economic review and said windmills “are ugly, expensive and harm wildlife.”
Cable maker Prysmian abandoned its US project, citing the lack of a robust market for offshore wind farms.
Analysts foresee a significant risk to future development of offshore wind in the United States.
What happened to Orsted’s Sunrise Wind project?
The Sunrise Wind project, which was intended to be the largest offshore wind farm in the United States, faces delays and significant cost increases. These difficulties have resulted in a loss of 12.1 billion Danish kroner ($1.69 billion) for Orsted, compounded by the deterioration of offshore leases.
What measures did Donald Trump take and how do they affect the industry?
Trump suspended new federal leases for offshore wind energy, claiming that windmills are “ugly, expensive and harm wildlife.” This decision, along with an environmental and economic review, puts the development of offshore wind projects in the United States on hold, directly affecting companies with plans in the region.
Why did Prysmian decide to abandon its US project?
Prysmian, a leader in cable manufacturing, decided not to move forward with its Massachusetts plant due to the lack of a strong market for offshore wind energy in the United States. The company had preliminary contracts for almost $900 million, but these never materialized.
What impact did this have on the stock market?
Orsted shares fell 13.6%, continuing a downward trend that has seen them plummet 84% since 2021. Prysmian also suffered a 1.5% drop, while other players such as RWE, Nordex and Vestas saw declines of between 1% and 2%.
What’s next
The future of the offshore wind industry in the United States faces uncertainty under current policies. Companies such as Orsted and Prysmian could redirect their focus to more stable markets such as Europe, while assessing the economic impact of their failed investments. Analysts anticipate that the US market could become unviable if there is no change of course in federal policies. The environmental and economic review promised by Trump will be key to determining whether offshore wind can regain viability in the region.
