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COPENHAGEN - Danish renewable energy company Ørsted A/S confirmed Monday it will proceed with its planned DKK 60 billion ($9.6 billion) rights issue despite receiving a stop-work order for its Revolution Wind project in the United States.
The company has appointed a consortium of banks including Morgan Stanley (NYSE:MS), BNP PARIBAS, Danske Bank (CSE:DANSKE), J.P. Morgan, BofA Securities, and Goldman Sachs to underwrite approximately 49.9% of the rights issue not covered by the Danish state, its majority shareholder.
Revolution Wind, a 50/50 joint venture with Skyborn Renewables, received the stop-work order from the US Bureau of Ocean Energy Management on August 22. The project is 80% complete with all foundations and 45 of 65 wind turbines already installed.
"We’re complying with the order and will work with our US partners and stakeholders to identify a solution as quickly as possible," said Rasmus Errboe, Group President and CEO of Ørsted, according to the press release.
The company said it is evaluating options to resolve the matter through dialogue with permitting agencies and potentially through legal proceedings. Ørsted aims to complete the project by the second half of 2026, with approximately DKK 5 billion ($800 million) in remaining investment required for its 50% share.
The rights issue, first announced on August 11, is designed to strengthen Ørsted’s capital structure amid what the company describes as "increased regulatory uncertainty for offshore wind in the US." The company maintained its financial guidance for 2025 and confirmed its medium-term targets.
Ørsted will hold an extraordinary general meeting on September 5 regarding the rights issue and will provide further details about the launch in due course.
The company’s 8.1 GW offshore wind projects under construction are expected to generate an additional DKK 11-12 billion in annual EBITDA when completed by the end of 2027.
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