Shares of Danish energy company Ørsted rose around 5% on Tuesday after a U.S. federal judge cleared the company and its partners to resume construction on the $5 billion Revolution Wind offshore wind project, which had been halted last month by the Trump administration.
In a ruling issued by the US District Court for the District of Columbia, the judge granted a preliminary injunction pausing a December 22 stop-work order imposed by the Bureau of Ocean Energy Management, the Interior Department agency responsible for offshore energy development in federal waters. The decision allows construction activities to restart while the legal case proceeds.
The ruling removes a significant regulatory obstacle for the project amid a broader legal dispute, as the administration of U.S. President Donald Trump seeks to curb the expansion of offshore wind development in federal waters.
The lawsuit filed by the Revolution Wind developers challenges both the December suspension and an earlier director’s order issued in August, which the companies argue unlawfully disrupted ongoing construction.
While the court has not yet ruled on the merits of the case, the injunction permits impacted construction activities to resume immediately.
“The court’s action will allow the Revolution Wind Project to restart impacted activities immediately while the underlying lawsuit progresses,” the company said in a statement, adding that it would continue engaging with the U.S. administration to reach an “expeditious and durable resolution.”
Developers said construction is expected to resume as soon as possible, with safety identified as the top priority.
The project is intended to supply affordable and reliable electricity to the U.S. Northeast, where several states have increasingly turned to offshore wind to meet climate targets and strengthen grid resilience.
The ruling marks a setback for President Trump’s efforts to roll back offshore wind development. Since returning to office, Trump has repeatedly criticised wind power and pledged to reduce federal support for renewable energy projects, citing environmental, economic, and permitting concerns. Several projects approved under previous administrations have faced renewed scrutiny or temporary suspensions.
Revolution Wind is a 50-50 joint venture between Ørsted and Skyborn Renewables, owned by Global Infrastructure Partners. The project has been closely watched by investors as a test case for the future of offshore wind development in the U.S. under a more challenging political environment.
Ørsted has faced mounting pressures in the U.S. market, including higher financing costs, supply-chain constraints, and regulatory uncertainty, leading the company to reassess parts of its North American portfolio. Despite these challenges, the company has consistently maintained that offshore wind remains critical to long-term decarbonisation efforts and meeting rising electricity demand.
