Orsted court win against Trump lifts wind farm maker’s shares

But the victory may prove short-lived, as analysts warn the White House could appeal the decision or take further regulatory action against other projects as part of the administration’s broader campaign to dismantle the renewable energy sector.

Orsted has been losing $2 million a day since the U.S. Bureau of Ocean Energy Management issued its work-stop order, opens new tab for its Revolution Wind project on August 22.

“While the judge’s injunction should provide near-term relief to Orsted shares, this does not protect Revolution from the outcome of the ongoing legal case, nor possible further actions,” Citi said in a note to clients on Tuesday.

Attorneys for the Trump administration had argued that the project failed to comply with the conditions of its permit related to conflicts with national security and scientific ocean surveys. Revolution Wind disputed those claims.

Monday’s legal ruling, which is temporary, blocks the enforcement of the stop-work order while the case remains under review.

The Danish company, already grappling with inflation, higher interest rates, and supply chain delays, is in the process of completing a $9.4 billion capital injection from shareholders to stave off a potential credit rating downgrade.

The ruling reduces the immediate risk of a downgrade, according to brokerage Sydbank, though they cautioned of “high political risk in the U.S. market.”

Orsted shares were up 6.45% at 118 Danish crowns by 0926 GMT, after rising as much as 12% at market open.