A red alert has been issued for the renewable energy sector after the collapse of Danish giant Ørsted exposed the industry’s profound vulnerability to US politics. The company’s stock nosedived to a historic low upon revealing a $9 billion emergency fundraising plan, a direct result of the Trump administration’s hostile stance.
The vulnerability was laid bare by a policy decision to freeze all offshore wind permitting and leasing in the United States. This move brought the market to a halt and sabotaged Ørsted’s business model, which relies on selling project stakes to finance its capital-intensive operations.
The situation is “extraordinary,” according to CEO Rasmus Errboe, who highlighted the perfect storm of American political antagonism and ongoing supply chain problems. The $9 billion figure is a stark indicator of the financial damage caused by this sudden market closure.
The Danish state, a majority owner, is backing the rescue plan, but the incident has shaken investor confidence to its core. Ørsted’s turmoil is now seen as a harbinger of broader trouble, potentially derailing global climate commitments as companies reassess their US investments.