Judge Stops Trump Directive to Halt Offshore Wind Development

Danish offshore wind developer Ørsted has received approval to continue work on its nearly finished Revolution Wind project after a federal judge overturned the Trump administration's construction halt. This ruling is a significant win for Ørsted and a setback for Trump's attempts to limit the offshore wind industry.

The U.S. Interior Department’s Bureau of Ocean Energy Management (BOEM) had issued a stop-work order on August 22, pausing progress on the 704 MW Revolution Wind farm, situated 15 miles off Rhode Island and Connecticut. This order came despite the project being fully permitted and 80% complete. Developed by Ørsted and its partner Skyborn Renewables, Revolution Wind aims to generate enough electricity for over 350,000 homes.

Ørsted promptly contested the order in federal court, claiming it was “arbitrary, capricious, unlawful and issued in bad faith.” According to Reuters, the halt was costing the company $2 million per day, jeopardizing its $5 billion investment. Rhode Island and Connecticut also took legal action, highlighting the political implications in New England, where the project is crucial for state clean energy objectives.

On Monday, U.S. District Judge Royce Lamberth granted Ørsted a preliminary injunction. Lamberth, a Ronald Reagan appointee, noted that the Trump administration provided “contradictory reasons” for the construction stoppage and labeled the changing justifications as “the height of arbitrary and capricious” behavior.

The judge stressed that Revolution Wind had justifiably depended on government assurances and that the abrupt reversal threatened its ability to meet contractual deadlines. He stated, “There is no doubt in my mind of irreparable harm to the plaintiffs.”

The ruling stops the Interior Department from enforcing the stop-work order while litigation proceeds, enabling construction to resume.

The Trump administration has openly opposed offshore wind, with Interior Secretary Doug Burgum recently stating there was “no future” for the industry under Trump due to its perceived cost and reliability issues. At the Gastech conference in Milan, Burgum suggested that several offshore projects could undergo review.

However, the court's ruling indicates that fully permitted projects under construction may have stronger legal protections. For Ørsted, this decision arrives at a pivotal moment. The company stated it would “resume impacted construction work as soon as possible, with safety as the top priority.” Following the ruling, its U.S.-listed shares increased nearly 9%.

Connecticut Governor Ned Lamont commended the ruling, calling it “extremely encouraging for workers and our energy future.” The Biden administration had previously aimed to expand offshore wind capabilities, and the case's outcome might affect the pace at which the U.S. advances in a sector where Europe and Asia are currently leaders.