Danish wind firm Ørsted has raised the alarm across the renewable energy sector, blaming President Trump’s policies for forcing it into a $9 billion tap of its shareholders. The news triggered a massive sell-off, sending the company’s stock price to its lowest point ever.
The company made it clear that its financial stability was undermined by the Trump administration’s hardline stance against wind power. This has made it impossible for Ørsted to follow its typical business model of selling a stake in new projects to cover costs, specifically for its developments on the US eastern seaboard.
The alarm bells are ringing louder as the industry is already dealing with the aftermath of the pandemic, including supply chain issues and higher borrowing costs. Trump’s long history of opposing wind farms, including a 14-year-old feud over his Scottish golf course, has now become a direct threat to global energy companies.
The Danish government, a majority owner, has approved the fundraising plan. According to CEO Rasmus Errboe, the company faces an “extraordinary situation” and needs the capital to strengthen its financial structure and move forward with projects in the US and worldwide.