Orsted, one of the world’s leading renewable energy companies, has been hit hard by recent challenges in the U.S. market. The company’s shares plunged to a record low on Monday as it announced a $9.4 billion rights issue to fund a major wind power project in the United States.
The decision to seek additional funding from shareholders comes after potential partners were deterred by President Trump’s hostile stance towards wind power. Trump’s suspension of licensing for offshore wind projects on his first day back in office in January has created uncertainty and obstacles for companies like Orsted.
The $9.4 billion rights issue represents a significant portion of Orsted’s market value, highlighting the urgent need for capital to support the U.S. project. The company has been facing challenges in recent years, including inflation and logistical issues that have driven up costs.
Despite these obstacles, Orsted remains committed to expanding its presence in the U.S. market and capitalizing on the growing demand for renewable energy. The company sees the U.S. as a key growth market for offshore wind power and is determined to overcome the current challenges.
In a statement, Orsted CEO emphasized the importance of the U.S. market for the company’s long-term growth strategy. He acknowledged the difficulties posed by the current regulatory environment but expressed confidence in Orsted’s ability to navigate these challenges and deliver a successful project.
Investors will be closely watching Orsted’s progress in the U.S. market and the outcome of the rights issue. The company’s ability to secure funding and overcome regulatory hurdles will be key factors in determining its future success in the U.S. wind power sector.
As Orsted continues to pursue its ambitious goals in renewable energy, the company remains focused on innovation, sustainability, and long-term value creation. With the support of shareholders and a strong commitment to its mission, Orsted is well-positioned to weather the current challenges and emerge as a leader in the global transition to clean energy.