Danish firm Ørsted is tapping its shareholders for a massive $9 billion after long-feared US political risk became a harsh reality under the Trump administration. The company’s stock crashed to a historic low upon the announcement, reflecting the severity of the new business climate.
The risk materialized when Trump ordered a review of all wind permitting, a move that crippled Ørsted’s ability to finance its American projects. Its standard model of selling project stakes was blocked as the value of these assets plummeted due to the hostile policy environment.
The reality of this risk was further confirmed when the administration halted a Norwegian developer’s project, proving no company was safe. This has sent a chill through an industry already struggling with high costs and interest rates.
CEO Rasmus Errboe has called the situation “extraordinary.” The $9 billion capital raise, backed by the Danish government, is a direct response to this reality, aimed at strengthening the company’s finances to withstand the political storm.