Danish wind energy company Ørsted eyes capital increase following challenges in the US market.
In a significant development, Danish offshore wind power group Ørsted announced plans to raise 60 billion kroner ($9.4 billion) by selling new shares [1]. This move comes in the wake of financial difficulties caused by the US President Donald Trump's opposition to the sector.
Trump's administration has imposed restrictive policies that hinder the development and financing of wind projects in the US. His executive actions include withdrawing wind projects from offshore leasing opportunities and imposing a 60-day moratorium on all renewable energy projects offshore. Furthermore, Trump spearheaded more stringent rules defining what counts as "breaking ground" to qualify for renewable energy tax credits, removing the previous less burdensome 5% upfront cost requirement and demanding demonstration of significant physical work such as foundation excavation [1].
These policy changes make it harder and riskier for companies like Ørsted, which invest heavily in offshore wind, to secure US project approvals and maintain financial viability. The uncertainty and increased costs linked to qualifying for tax credits undermine project economics, thereby impacting Ørsted’s US investments. Trump’s public statements further signal ongoing hostility to wind power development, reducing investor confidence in the sector in the US [1][2].
Following the announcement, shares in Ørsted tumbled 28 percent on the Copenhagen stock exchange [1]. The stock exchange transaction involved Ørsted's shares, with the funds raised intended to address the company's woes.
We invite our readers to share their views and experiences in the comments section below. For journalistic inquiries or suggestions, please email news@our website. The terms of use for comments are available for readers to review. A link to log in is provided for leaving comments.
[1] Source: [News Article Link] [2] Source: [News Article Link]
Read also:
- Stone mining has transformed the once renowned 'Sada Pathor' into a desolate, post-apocalyptic landscape.
- In the Heart of Soho, Manhattan, a New Brewery Emerges Underground
- Financial regulatory body OCC imposes Anti-Money Laundering (AML) disciplinary action against Wells Fargo.
- Revised Tax Policy for Motor Vehicles Pushed for Greater Eco-friendliness, Suggested by Court Auditors
