Economy

Ørsted can restart Revolution Wind in the USA after a court ruling

Revolution Wind is back on track after a federal judge in Washington cleared the Danish energy company Ørsted to resume work on its near-finished offshore wind project off the coast of Rhode Island, following a stop-work order issued by the Trump administration in late December.

What the court decided and why it matters

Late on Monday, US time, Senior Judge Royce Lamberth granted temporary relief that allows construction activities to restart while the wider legal dispute continues. The ruling is a setback for the Trump administration’s attempt to pause multiple offshore wind projects on national security grounds, and it reduces the immediate risk of an open-ended delay for a project that is close to completion.

For Ørsted, the decision matters beyond a single permit fight. Revolution Wind has become a test case for how far the federal government can go in interrupting projects that are already under construction, have received federal approvals, and are integrated into state energy planning in the US Northeast.

A stop order based on classified national security concerns

On 22 December 2025, the Bureau of Ocean Energy Management (BOEM), within the Department of the Interior, issued a director’s order instructing Revolution Wind to suspend all ongoing activities for 90 days, citing national security reasons. The order referred to new classified information provided by the US defense establishment in November 2025 and said the suspension could be extended while authorities assessed whether the risks could be mitigated.

In a parallel public statement, the Department of the Interior said it was pausing leases for five large-scale offshore wind projects under construction in federal waters, arguing that offshore wind turbines can create radar interference (“clutter”) and that evolving adversary technologies could heighten risks near population centres on the US East Coast.

The central issue in court has been transparency and process: the developers say they cannot meaningfully respond to concerns they cannot see, while the administration argues that national security must outweigh project delays.

Image: Bo Amstrup / Ritzau Scanpix / Ritzau Scanpix

How far along Revolution Wind is

Revolution Wind is designed to supply electricity to around 350,000 homes in Rhode Island and Connecticut once it is fully operational. The project is nearly 90% complete, and the stop-work order landed at a particularly sensitive stage: according to court arguments reported by US media, a specialised installation vessel is scheduled for only a limited window, meaning delays can ripple through the construction calendar.

Ørsted is a co-owner of the project (a joint venture structure), which increases the reputational and financial stakes in what is already a politically contested segment of the US energy transition.

The cost of delays, in a project with tight logistics

One reason the case moved quickly is the scale of the financial exposure. The developers have argued that each day of halted activity imposes significant costs — from vessel contracts to labour, port operations, and the knock-on effects of pushing offshore work into less favourable weather.

This is a familiar constraint in offshore wind globally: installation vessels are scarce, and schedules are choreographed months in advance. When a project slips, the vessel does not wait indefinitely — it moves on to the next contract. For developers, that can turn a regulatory pause into a much larger risk of cascading delays.

A repeated legal clash with the Trump administration

This is not the first time Revolution Wind has faced a federal stop-work order. The project was previously halted in August 2025 and later allowed to resume after Judge Lamberth granted relief. The December order, however, relied on a new national security rationale tied to classified assessments, which became central to the administration’s attempt to differentiate the second pause from the earlier court fight.

The broader policy signal has been clear: USA President Donald Trump has repeatedly criticised wind energy and has said his administration will not approve new wind projects. The legal disputes now underway test how that stance translates into federal decision-making when projects are already under construction and backed by earlier permits.

What happens next for Ørsted and for other projects

The court order does not end the underlying dispute. It temporarily restores the status quo — allowing work to proceed — while the case continues on the merits. The administration can still argue that it has authority to pause or restrict activities if it can substantiate national security claims and follow due process.

The Revolution Wind hearing is also part of a wider week of litigation. Other developers, including Equinor and Dominion Energy, have challenged the same December pause affecting their projects. For the offshore wind sector, the immediate question is whether courts will apply similar reasoning across cases — particularly around the need for evidence, procedural fairness, and the availability of less disruptive alternatives than a blanket stop.

Why this story resonates in Denmark and across Europe

For Denmark, Ørsted’s legal win highlights how deeply European energy companies are exposed to regulatory volatility in the USA — even when projects have cleared earlier federal hurdles. The case also shows the tension between long-term decarbonisation plans at state level in the US Northeast and shifting priorities in Washington.

For Europe, and especially for the Nordic region, the episode lands in a period when offshore wind is central to energy security and industrial policy. The outcome in the USA will not only affect individual balance sheets, but also investor perceptions of political risk in large renewables projects, with potential consequences for financing costs and supply chains on both sides of the Atlantic.

In the short term, Ørsted can restart work on Revolution Wind. The larger question is whether the legal check provided by USA courts will be enough to stabilise the offshore wind pipeline — or whether further pauses, appeals, or new administrative measures will keep the sector in prolonged uncertainty.

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