US tells Orsted to halt work on offshore wind project off Rhode Island

By Nichola Groom

Aug 22 (Reuters) - The Trump administration on Friday ordered Denmark's Orsted ORSTED.CO to stop construction on an offshore wind project near Rhode Island that is 80% complete, according to a letter posted on the website of the Bureau of Ocean Energy Management.

The move is the administration's latest effort to hinder U.S. renewable energy development and is the second time this year the Interior Department, which oversees BOEM, has halted work on a major offshore wind project.

"Orsted is evaluating all options to resolve the matter expeditiously," the company said in a statement, adding that it was reviewing the financial implications of the order and was considering legal action.

On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending an environmental and economic review of projects. He has repeatedly criticized wind energy as ugly, unreliable and expensive.

Revolution Wind is a $1.5 billion project that was scheduled to be completed next year and expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut.

The National Ocean Energy Industries Association, an industry trade group, said halting work on a project that is almost finished would jeopardize jobs and investment.

“These projects are not only about energy," NOIA President Erik Milito said. "They advance priorities of the Administration by restoring American manufacturing, strengthening shipbuilding, modernizing ports, and building the reliable power needed to support data centers and AI innovation."

The stop-work order is driven by unspecified national security concerns arising from the administration's review of offshore wind projects in federal waters, according to the letter, signed by BOEM acting Director Matthew Giacona.

The bureau is seeking to protect U.S. national security and prevent "interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas," Giacona said.

Orsted is among the biggest global offshore wind companies, but its U.S. business has suffered setbacks.

The company in 2023 was forced to cancel two big New Jersey projects due to soaring costs. And earlier this month, Orsted asked shareholders for $9.4 billion to help fund its Sunrise Wind project off the New York coast after potential partners pulled out due to Trump's hostility to wind power.