Image Source: The Verge
A pivotal US court ruling has cleared the way for Danish energy giant Ørsted to resume construction on the Revolution Wind offshore wind farm off the coast of Rhode Island, reversing a politically charged work stoppage imposed last month.
Key Developments on the Case
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On September 22, a federal judge granted Ørsted and its partner Skyborn Renewables a preliminary injunction to restart construction of the Revolution Wind project, allowing the nearly finished offshore wind farm to move forward.
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This injunction overturns the stop-work order issued on August 22 by the Trump administration’s Department of the Interior’s Bureau of Ocean Energy Management (BOEM), which halted the project citing unspecified national security and permit compliance concerns.
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The judge’s decision followed legal challenges filed by Ørsted, Skyborn Renewables, and the states of Rhode Island and Connecticut, which argued the halt was arbitrary and caused immediate harm to workers, the environment, and regional energy stability.
Revolution Wind Project Details and Importance
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The project is located approximately 15 miles offshore Rhode Island and is designed to generate enough electricity to power about 350,000 homes in Rhode Island and Connecticut combined.
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Revolution Wind is around 80% complete, with all offshore foundations installed and 45 out of 65 wind turbines erected.
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Ørsted and its partners have invested or committed approximately $5 billion into the project since its approval in 2023 under the Biden administration.
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The construction suspension has caused Ørsted to incur estimated daily losses of $2 million and risks extending the project timeline beyond the expected second half of 2026 commercial operation date.
Contested Government Claims and Legal Arguments
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The Trump administration’s halt was justified by allegations that Revolution Wind had failed to meet several permit conditions, including coordination with Navy activities and addressing potential interference with NOAA scientific surveys.
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Ørsted and partners refuted these claims, stating the project had complied with all necessary regulatory requirements following nearly a decade of review, with permits fully secured.
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The administration’s legal filings were criticized as based on belated and factually incorrect grounds raised only after the stop-work order.
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hode Island and Connecticut attorneys general emphasized the urgent need to resume work to avoid irreparable harm to state energy goals, pending contracts, union jobs, and economic stability.
Broader Context and Impact on Offshore Wind in the US
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The Revolution Wind case exemplifies the ongoing tension between the Trump administration’s skepticism toward offshore wind development and the Biden administration’s aggressive clean energy policies.
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Trump has characterized offshore wind projects as costly and unreliable, seeking to restrict their growth, while states and clean energy advocates view such projects as critical for meeting climate targets and energy independence.
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This court ruling is a significant victory for the offshore wind industry, potentially setting a legal precedent that may influence other stalled projects facing political and regulatory hurdles.
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Ørsted simultaneously announced a major rights issue aiming to raise $9.4 billion, highlighting the strategic importance of stabilizing its capital structure amid these operational uncertainties.
In summary, the judge’s injunction to allow construction to resume on the Ørsted-led Revolution Wind project marks a crucial turning point after nearly a month of disruption. This decision supports advancing the US offshore wind agenda and alleviates immediate financial and operational risks for one of the nation’s flagship renewable energy developments.
Source: Reuters
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