Orsted Fights Back: $5B Offshore Wind Project Halted by Trump Order

Orsted’s $5 Billion Gamble Runs Aground

When the sun rose over Atlantic City last Monday, the only thing spinning were the lawyers. Orsted, the Danish energy giant, had just dropped a federal lawsuit aimed at the Trump administration’s eleventh-hour order that froze its $5 billion offshore wind project off the New Jersey coast.

A Project on Pause

For three years, Orsted’s team had raced to plant 98 turbines in the seabed 15 miles east of Atlantic City. Steel monopiles were already stacked at the Paulsboro marine terminal; 2,400 union jobs were booked through 2026. Then, on a Friday evening press release, the Department of Interior cited “national security concerns” and yanked the final permit.

“We were one signature away from breaking water,” said Orsted U.S. CEO David Hardy. “This action is arbitrary, capricious, and ignores every environmental review we’ve passed.”

The Legal Chessboard

Orsted’s 42-page complaint, filed in the D.C. Circuit, claims the halt violates the Administrative Procedure Act and the Outer Continental Shelf Lands Act. The suit demands immediate reinstatement of the permit and asks for expedited briefing—an unusual move that signals the company fears a multi-year delay could sink financing.

What’s at Stake

• $5 billion in committed capital from 19 international banks
• 1,100 MW of clean power—enough for 500,000 homes
• $250 million already spent on U.S.-made transition cables and turbine components
• $50 million in annual county tax revenue for Atlantic, Cape May, and Ocean counties

The Administration’s Side

A senior Interior official, speaking on background, pointed to “undisclosed security vulnerabilities” related to submarine sonar arrays operated by the Navy. The official declined to elaborate, citing classified briefings. Critics note the same tract was cleared by the Pentagon in 2021 under a different administration.

Market Shockwaves

Shares in Orsted A/S slid 8 % in Copenhagen trading. Analysts at Morningstar warn that institutional investors may now reassess U.S. offshore wind as “uniquely exposed to regulatory whiplash,” potentially pushing capital toward European or Asian projects.

Local Voices

In the parking lot of the Local 825 operating engineers’ hall, apprenticeship coordinator Tony Ricci is blunt: “My guys were counting on 400 jobs. If this dies, we’re back to seasonal casino work.”

Next Moves

A scheduling order could come within 30 days. If Orsted wins an injunction, construction ships booked from Louisiana’s Gulf Coast could still hit the water this summer. If not, the company must decide whether to re-bid turbines, renegotiate power-purchase agreements, or walk away—an outcome New Jersey Governor’s office calls “catastrophic for our climate targets.”