The U.S. Department of the Interior on Aug. 22 directed Danish company Orsted to halt all construction on Revolution Wind, the offshore wind farm off Rhode Island that is nearing completion.
In a
letter, Bureau of Ocean Energy Management (BOEM) acting Director Matthew Giacona ordered Orsted to suspend all activities on the project while officials conduct a review to address “concerns related to the protection of national security interests.”
The stop-work order also intended to prevent “interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas,” according to the letter.
Giacona stated that Orsted “may not resume activities” until BOEM confirms the review is complete, and that failure to comply with the order could prompt “corrective action.”
Orsted said it was evaluating all options, including engaging with permitting agencies to seek a resolution or pursuing legal proceedings, while also assessing the financial implications of the order.
“Revolution Wind is complying with the order and is taking appropriate steps to stop offshore activities, ensuring the safety of workers and the environment,” Orsted said in a
statement. “Orsted is evaluating all options to resolve the matter expeditiously.”
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 project secured all required permits and BOEM approval under the Biden administration, and is now 80 percent complete, with 45 out of 65 wind turbines installed,
according to the company.
Erik Milito, president of the National Ocean Industries Association (NOIA), said the project is already near completion and stopping work now could put jobs, contracts, and surrounding communities at risk.
“These projects are not only about energy. 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,” Milito said in a
statement.
Orsted, Denmark’s
largest energy company, is largely-owned by the Danish government with a
50.1 percent stake. Earlier this month, the company
sought $9.4 billion from shareholders to help fund its Sunrise Wind project off the New York coast.
In April, Interior Secretary Doug Burgum
ordered a pause on Equinor’s Empire Wind project off New York’s coast for review, citing insufficient analysis when it was approved. New York Gov. Kathy Hochul later
said that the Trump administration had agreed to lift the stop-work order.
About 30 percent of the project has already been completed, the Norway-based company
said in May. The project, located 15 to 30 miles southeast of Long Island, is expected to start generating electricity in 2027.
Reuters contributed to this report.
