(Dec 9): Shares in Orsted A/S jumped to their highest level in four months after a US federal judge ruled US President Donald Trump’s executive order banning new wind projects illegal.
The Danish wind-energy developer rose as much as 4.4% while turbine manufacturer Vestas Wind Systems A/S gained 3.7% in early Copenhagen trading.
Wind-energy stocks have been whipsawed this year by Trump’s efforts to halt the build-out of offshore wind along the US coasts. The companies have also been hit in recent years by soaring costs.
US District Judge Patti Saris said Monday (Dec 8) the president’s order is “arbitrary and capricious and contrary to law”, siding with more than a dozen US states and a clean-energy group that challenged it. The directive, issued in January, effectively halted approvals of wind farms on land and sea pending a government review.
“The ruling should put to rest any remaining uncertainty for developers with projects currently under construction in the US,” analysts at RBC Europe Ltd said in a note.
The regulatory changes under Trump have been a setback for Vestas, a key supplier to US wind developers. Orsted has several projects in the US, including Revolution Wind, a nearly completed wind farm off the coast of Rhode Island. A US judge ruled in September that construction could continue after the Trump administration had ordered work to halt.
See also: Indonesia to levy large fines on miners breaching forest permits
Uploaded by Arion Yeow
