A hardline stance against wind energy from President Trump has sunk Danish power company Ørsted, triggering a massive $9 billion fundraiser and sending its stock to a historic low. The company stated its business model is no longer viable in the current US political climate.
The core issue is the collapse of Ørsted’s financing strategy. The company relies on selling stakes in its large-scale wind farms to cover costs, but Trump’s review of wind permits has so devalued its US projects that it cannot find buyers, leaving a gaping financial hole.
This hardline approach has shaken an industry already struggling with the economic hangover from the pandemic and rising interest rates. Trump’s long-standing, and often factually incorrect, criticisms of wind power have now become a direct barrier to investment and development.
The Danish government, which owns half of Ørsted, is backing the emergency fundraising. The company’s chief executive described the “extraordinary situation,” framing the capital raise as a necessary measure to ensure “financial robustness” while it attempts to move forward with its US and global plans.