Trump Offshore Wind Halt Overturned. Orsted Stock Jumps.

An offshore wind project near Rhode Island can proceed, a federal judge said. (Adam Glanzman/Bloomberg)

Key Points

About This Summary

• A judge allowed Orsted to resume building an offshore wind project near Rhode Island, blocking the Trump administration’s halt order.
• Orsted’s American depositary receipts rose 9.1% following the decision; the company has already invested $5 billion in the project.
• The Interior Department will continue to review offshore wind projects, investigating possible national security impacts.

A federal judge agreed to allow Danish energy company Orsted to resume construction on an offshore wind project near Rhode Island, imposing a preliminary injunction on the Trump administration’s decision to halt the project.

The decision sent Orsted’s American depositary receipts up 9.1% in midday trading on Monday. Revolution Wind said it will resume impacted construction work as soon as possible, with safety as the top priority.

The Interior Department’s Bureau of Ocean Energy Management (BOEM), which issued the stop work order for the project last month, said in a statement that it will continue to review offshore wind projects.

“As a result of the Court’s decision today, Revolution Wind will be able to resume construction as BOEM continues its investigation into possible impacts by the project to national security and prevention of other uses on the Outer Continental Shelf,” the agency said. “The Department of the Interior remains committed to ensuring that prior decisions are legally and factually sound.”

When it first stopped the project, the agency had said that Revolution Wind raised national security concerns, without releasing details. The Department of Defense had previously been consulted on the project and allowed it to move forward.

Orsted, which owns Revolution Wind along with a unit of investment firm BlackRock , said it has already committed $5 billion to the project, and it’s 80% complete. Revolution Wind is expected to provide enough power for more than 350,000 homes in Rhode Island and Connecticut.

In a two-page order, a U.S. District Court Judge Royce Lamberth wrote that “Revolution Wind has demonstrated likelihood of success on the merits of its underlying claims.”

Write to Avi Salzman at avi.salzman@barrons.com