Federal Court Rules: Trump Administration Cannot Halt “Revolution Wind” Offshore Project

TradingKey - A U.S. federal court ruled on Monday that the Trump administration has no authority to halt Danish energy giant Orsted’s offshore wind project, Revolution Wind, off the coast of Rhode Island. The company is now allowed to immediately resume construction. Orsted’s U.S.-listed shares (DNNGY.US) surged 8.67% to $11.60 following the decision.

Located about 24 kilometers off the coast of Rhode Island, the project will deliver clean electricity to approximately 350,000 homes in Rhode Island and Connecticut upon completion.

On August 22, the Trump administration ordered a suspension of construction, citing national security risks and insufficient marine surveys. However, the judge found these justifications to be inconsistent and unsubstantiated, characterizing the order as “arbitrary and capricious” — a violation of due process.

The judge emphasized that Orsted and its joint venture partner Skyborn Renewables had already invested nearly $5 billion based on prior government approvals and commitments. The construction halt placed the project at serious risk of default and collapse. During the weeks-long stoppage, the company incurred losses of up to $2 million per day.

Following the ruling, both Rhode Island and Connecticut — which had previously filed lawsuits against the shutdown order — welcomed the decision. Connecticut Governor Ned Lamont called it “a major win for workers and our energy future,” and pledged continued coordination with the federal government on energy policy.

Nonetheless, the U.S. Department of the Interior stated it would continue reviewing potential national security implications and other uses of the outer continental shelf related to the project.