A U.S. federal judge has ruled in favor of Danish energy giant Orsted (OTC:DNNGY), allowing the company to restart its Revolution Wind project, which was previously halted by the Trump administration.
Orsted’s shares jumped over 5% in the European trading session on Tuesday.
District Judge Royce Lamberth gave Orsted the green light to resume work on its Revolution Wind project, a nearly completed venture that was put on hold by the Trump administration last month.
This is the second time in four months that the $5 billion Revolution Wind project has successfully obtained a temporary court order to counter a government stop-work order. The project was suspended, along with four others, by the Trump administration over national security concerns related to radar interference, as stated by the Interior Department on Dec. 22.
Implication Of The Ruling On Other Projects
Orsted’s legal battle with the Trump administration began when the company filed a lawsuit, earlier this month, challenging the suspension of its Revolution Wind project, citing substantial harm caused by the decision.
The company sought a court injunction to counteract the suspension, which it claimed was detrimental to the project. This legal action has now resulted in a favorable ruling for Orsted, allowing the company to proceed with its offshore wind project.
Orsted’s lawsuit is among multiple legal challenges brought by offshore wind developers and states aiming to overturn the Interior Department’s halt on five offshore wind leases. The recent ruling could have implications for other companies with suspended projects, such as Equinor (NYSE:EQNR) and Dominion (NYSE:D).
Senate Minority Leader Chuck Schumer (D-N.Y.) had previously criticized the Trump administration’s decision to freeze the offshore wind projects, stating that it endangered high-paying union jobs and slowed the nation’s clean energy progress.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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