Orsted shares plunge to record low after US halts $1.5B wind project

Shares of Danish renewable energy company Orsted fell to a new record low after the US government ordered the firm to halt a nearly completed project.

On Monday, Orsted’s stock dropped 15.8% to 180.45 kroner at 12:14 p.m. Mecca time, after touching 173.40 kroner, a 19% decline and its lowest level ever.

The decline follows a decision by the US Bureau of Ocean Energy Management last Friday to stop work on the $1.5 billion Revolution Wind project, which was 80% complete. The government cited national security concerns as the reason for the halt.

The move comes even as the world’s largest offshore wind farm developer said on Monday it is proceeding with plans to raise 60 billion kroner ($9.4 billion) in new capital and continues to enjoy support from the Danish government, its majority owner.

Revolution Wind, a joint venture equally owned by Orsted and a BlackRock unit, was scheduled to begin operations next year, providing enough electricity for 350,000 homes in Rhode Island and Connecticut under 20-year contracts.