Danish renewable energy leader Ørsted has announced plans to launch a fresh legal battle against an order from the Trump administration that halted construction on a major US offshore wind project. The company argues the directive is causing significant damage to its investments.
Legal Proceedings Initiated for Sunrise Wind
Ørsted stated on Wednesday, 7th January 2026, that its Sunrise Wind Project located off the coast of New York faces substantial harm due to a stop-work order issued last month. In response, the company will initiate preliminary proceedings in the U.S. District Court for the District of Columbia.
The firm emphasised that it had previously secured all necessary permits for the Sunrise Wind development following multi-year reviews. This process included consultations and mitigation agreements with relevant military bodies. According to Ørsted, the project is currently 45% complete and was on track to begin generating power by October of this year. Once fully operational in 2027, the wind farm is expected to generate enough electricity to power nearly 600,000 homes.
A Growing Trend of Legal Challenges
This is not an isolated case. Ørsted's move is part of a growing wave of legal actions by European energy companies aiming to protect billions of dollars invested in U.S. offshore renewable projects. Many of these ventures are midway through construction or nearing completion.
Just last Friday, Ørsted and Global Infrastructure Partners' Skyborn Renewables filed a similar challenge concerning their $5 billion Revolution Wind project. In a parallel development, Norway's Equinor has also stated it will file a legal challenge over the stop-work order affecting its Empire Wind project, also located off New York.
National Security Concerns Cited by US Government
The legal battles stem from a decision by the U.S. government in December to pause federal leases for five East Coast projects. The administration cited "national security risks identified by the Department of War in recently completed classified reports" as the reason for the halt.
The Bureau of Ocean Energy Management (BOEM), which issued the initial stop-work order, has not yet responded to requests for comment on Ørsted's planned legal action. This situation has created significant uncertainty for the offshore wind industry in the United States.
The regulatory path for these projects has been turbulent. The government had previously paused the Revolution Wind project in August, before a federal judge allowed construction to resume in September. Similarly, construction of the Empire Wind project was halted last spring before negotiations between the Trump administration and Democratic New York Governor Kathy Hochul enabled work to restart.
