Revolution Wind developer sues Trump administration over project halt

The developers of the Revolution Wind offshore wind farm sued the Trump administration Thursday over a stop-work order that has stalled the project.

Meanwhile, a Wall Street ratings agency issued a negative outlook for the project’s Danish developer's stock and expressed concern that a halt to its sister project, Sunrise Wind, "cannot be ruled out."

On Thursday, Orsted, the developer of both Sunrise and Revolution Wind, announced Revolution filed the litigation against several Trump administration agencies and officials, including Bureau of Ocean Energy Management, calling the lawsuit a "necessary step" to get Revolution Wind built in coming months.

The 704-megawatt project, set to deliver energy to Connecticut and Rhode Island by next year, is 80% complete and has received all needed federal approvals.

BOEM, under Trump’s Department of the Interior, last month halted Revolution’s offshore work, citing "national security" concerns. Interior Secretary Doug Burgum cited the prospect of "drone swarm" attacks and radar interference as among the reasons.

Revolution Wind faces "substantial harm from the continuation of the stop work order," Orsted said in a statement announcing the suit. Orsted is asking for a preliminary injunction to allow the work to proceed. It is building the project with investment firm Skyborn Renewables.

The suit, filed in federal court for the District of Columbia, called the stop-work order "invalid" and said it "must be set aside because it was issued without statutory authority, in violation of agency regulations and procedures and the Fifth Amendment’s Due Process Clause, and is arbitrary and capricious."

BOEM didn’t immediately respond to a request for comment.

Fitch Ratings, meanwhile, on Thursday changed its outlook for already battered Orsted stock to negative from stable, citing "further deterioration of the operating environment in the U.S."

"The reasons behind the recent stop-work order on the construction of its Revolution Wind plant are unclear and another stop-work order on its Sunrise Wind project cannot be ruled out," Fitch said in a note to investors. "The full implications of the worsening business environment in the U.S. for Orsted's business and financial profiles are hard to quantify and could pressure credit metrics from 2027."

Sunrise Wind is about 35% complete "with more than 13 turbine foundations installed offshore," a spokeswoman said. 

Sunrise Wind, a 924-megawatt project that is set to send its energy to the Long Island electric grid by 2027, has completed most land-based work, from Smith Point to a receiver station in Holtsville. Orsted plans a stock offering to help raise more than $9 billion, with $6.2 billion of that earmarked to finish Sunrise.

BOEM officials would not specifically address questions from Newsday about why Revolution Wind was singled out for the stop-work order given other similar projects under construction or in operation, including Sunrise and South Fork Wind, respectively.

But officials have made clear they have myriad issues with offshore wind in general, most stemming from Trump’s long-stated animosity toward "green-energy scams" and wind energy in particular. Several administration officials at a Cabinet meeting last month criticized wind energy on defense, environmental and financial grounds, including federal subsidies that pay for half the escalating project costs.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.