The Domino Effect: Will Ørsted’s Crash Topple the US Wind Industry

The historic crash of Danish wind giant Ørsted has sparked fears of a domino effect that could topple the entire US wind industry. The company’s stock hit rock bottom after it revealed a $9 billion emergency fundraising plan, a crisis precipitated by the Trump administration’s anti-renewable energy policies.
The first domino to fall was Ørsted’s business model, which was knocked over by a US freeze on wind permitting and leasing. This policy blocked the flow of capital from project stake sales, a financial lifeline for the entire industry.
CEO Rasmus Errboe acknowledged the “extraordinary” circumstances, blaming the combination of hostile US policy and supply chain woes. The need for such a massive capital injection shows how quickly the financial foundations of the company were eroded.
While the Danish government is trying to prop up its national champion, the shockwaves are spreading. The crisis at Ørsted is seen as a grim test case, with the potential to trigger a broader collapse in investment and development across the US renewable energy sector.