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The Trump administration has suspended leases on all major offshore wind projects in the latest attack on the sector, which the US president has repeatedly criticized.
The US government, citing national security concerns, said it was halting leases of “expensive, unreliable, heavily subsidized projects” with immediate effect.
one in post on x, Interior Secretary Doug Burgum said President Donald Trump is “bringing common sense back to energy policy and putting security first!”
Shares in Ørsted, the world’s largest offshore wind developer, fell more than 14 percent after the announcement, while shares in wind turbine maker Vestas fell more than 4 percent.
Both companies are listed in Denmark. US-listed Dominion Energy’s stock fell 5 percent in morning trading.
Trump has previously described wind as the “worst” and “most expensive” form of energy and has taken several steps to thwart offshore projects since taking office.
In a press release, the Interior Department said Monday’s move followed “national security risks identified by the War Department in recent classified reports.”
It also pointed out what it claimed were “inherent” risks of radar interference from the turbines.
A total of five wind farms are included in the announcement. Some have been targeted by administrations before, such as Ørsted Revolution Wind and Equinor Empire Wind.
The suspension also includes Dominion Energy’s $10.8 billion Coastal Virginia Offshore Wind. The project was considered to be in a favorable position due to the advanced stage of construction and the advocacy of Republican Governor Glenn Youngkin.
Vineyard Wind, a project off the coast of Massachusetts, and Sunrise Wind, between Massachusetts, New York and Rhode Island, were also named in the announcement.
The Trump administration’s efforts against offshore wind suffered a setback in recent weeks when a Massachusetts district court banned the issuance of new permits after 17 states, Washington DC and clean energy groups sued the government.
A federal judge in September also allowed Ørsted to continue work on the Revolution Wind Farm, blocking a stop-work order issued by the Trump administration.
Today’s decision is a major blow to the developer, which had to tap shareholders for an additional $9bn in a rights issue in October as Trump’s hostility towards the sector scuttled efforts to sell a stake in its Sunrise Wind project.
The Interior Department said in a statement that the pause would give the government “time to work with leaseholders and state partners to assess the potential for mitigating the national security risks posed by these projects”.
