The project has 20-year power purchase agreements to supply 400 megawatts (MW) to Rhode Island.
In a letter to the company, BOEM acting Director Matthew Giacona stated: “BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas and the territorial seas.”
Revolution Wind is a joint venture between Ørsted and Skyborn Renewables. Located offshore Rhode Island, the project began construction after final federal approval last year and is currently about 80% complete, with 45 of its planned 65 turbines installed. Following the directive, Ørsted has halted offshore activities and emphasized that it is safeguarding the health and safety of workers as well as protecting the marine environment.
The company said in a statement: “Ørsted is evaluating all options to resolve the matter expeditiously.” These options include discussions with relevant permitting authorities for clarification or resolution, and potentially pursuing legal actions. Despite the order, Ørsted aims to keep the project on track for its scheduled commercial operation in the second half of 2026.
Revolution Wind has previously secured all required federal and state permits, including approval of its Construction and Operations Plan in November 2023, following reviews that lasted more than nine years. Once operational, the project will supply 400 megawatts (MW) of electricity to Rhode Island and 304MW to Connecticut, generating enough power for more than 350,000 homes under 20-year power purchase agreements.
Ørsted is also reviewing the financial impacts of the suspension. The company may consider legal proceedings as part of its response strategy. At the same time, it confirmed that preparations for a planned rights issue will proceed. Backed by its majority shareholder, the Danish state, the DKr60 billion ($9.4 billion) fundraising plan was announced earlier in August.
According to Ørsted, the rights issue is intended to strengthen its capital structure and provide flexibility to cover capital expenditure needs, including those for the Sunrise Wind project, without requiring partial asset sales or non-recourse financing.
Commenting on the suspension, the company noted: “The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US.”
With the project nearing completion and backed by long-term agreements, the resolution of the current suspension will be critical for its contribution to regional clean energy targets and Ørsted’s broader offshore wind portfolio.
