President Trump's administration just upped its war on offshore wind, and the stakes couldn't be higher for the industry in the US. Firms both domestic and foriegn have been shocked by the admoinistration's moves to throttle offshore wind, with many staring at a bleak period of lawsuits, losses and extended rework of plans.

Lawsuits Filed

Dominion Energy for instance has launched a lawsuit against the administration following the president’s order to stop work on all five US wind farms currently under construction. Global major Orsted is also said to be considering legal proceedings in response to the same move.

The shutdown order from the Bureau of Ocean Energy Management  BOEM, which suspends activities for 90 days, includes two Orsted project: 924MW Sunrise Wind, and 704MW Revolution Wind. The 'worst case' US scenario has already led to a credit downgrade for Orsted, besides possibly forcing it to sell assets in other regions to maintain liquidity for a long haul.  Among projects affected are Dominion's CVOW,  Vineyard Wind (Massachusetts), Revolution Wind (shared between Rhode Island and Connecticut), Sunrise Wind, and Empire Wind (both in New York).

Revolution Wind was set to begin generating power next month, according to Orsted. 

For Dominion, its 2.6GW Coastal Virginia Offshore Wind(CVOW) project had just begun turbine installation when the Department of the Interior's Bureau of Ocean Energy Management (BOEM) issued its stop-work order, citing fresh national security concerns.

In its suit filed last week Dominion claims that  “BOEM’s order sets forth no rational basis, cannot be reconciled with BOEM’s own regulations and prior issued lease terms and approvals, is arbitrary and capricious, is procedurally deficient, violates the Outer Continental Shelf Lands Act, and infringes upon constitutional principles that limit actions by the Executive Branch”.

Dominion claims to have spent about $8.9b for the $11.2b project, with costs already being paid by Dominion’s energy customers.

Dominion is asking the court to vacate the administration’s order.

Governors Take Up the Fight

Meanwhile governors of four Northeast states in the US have attacked President Donald Trump’s “irrational and erratic” offshore wind order while demanding its immediate withdrawal. Ned Lamont of Connecticut, Maura Healey of Massachusetts, Daniel McKee of Rhode Island, and Kathy Hochul of New York have signed onto a letter on December 24, demanding a classified briefing from Defense Secretary Pete Hegseth on just what possible new information could have sparked such an extreme step by Energy Secretary Burgum. With the administration adept at sidestepping queries or diverting attention to the next big crisis, donl;t expect any quick resolutions here.