Danish wind energy giant Ørsted has announced a drastic $8.8 billion capital raise to avert financial collapse, sending its shares plummeting over 25% to a historic low. The move follows crippling setbacks in the U.S. offshore wind market, where policy shifts under the Trump administration halted tax incentives and project approvals. Ørsted was forced to abandon the partial sale of its $3 billion Sunrise Wind project off New York—a key revenue stream—leaving a gaping hole in its finances. Despite posting stronger Q2 earnings (3.99 billion DKK profit vs. a 575 million DKK loss year prior), investors balked at the dilution risk and worsening U.S. outlook.
Strategic Retreat Amid Political Headwinds
The capital injection, approved via an emergency shareholder meeting, will primarily fund stalled U.S. operations while Ørsted offloads its European onshore assets to raise an additional $5 billion. Analysts note the sum far exceeds immediate needs, signaling deeper distress. The Danish state, as majority stakeholder, is expected to back the plan, but the company’s pivot underscores how political volatility has upended its once-dominant position in renewable energy.
