In an attempt to cripple an industry that the president has frequently criticized, the Trump administration took its most drastic action to date on Monday, stopping construction on all offshore wind projects in the United States.
Five offshore wind projects from Massachusetts to Virginia had their federal leases suspended, according to the Interior Department, “due to national security risks identified by the Department of War in recently completed classified reports.” The action is the administration’s most significant move to date against a sector that has already faced financing difficulties and rising costs. “Today’s action addresses emerging national security risks, including the rapid evolution of the relevant adversary technologies, and the vulnerabilities created by large-scale offshore wind projects with proximity near our East Coast population centers,” Interior Secretary Doug Burgum said.
Trump Administration stops all offshore wind projects
The pause impacts Vineyard Wind 1 off Martha’s Vineyard; Revolution Wind, which is intended to provide electricity to Connecticut and Rhode Island; Coastal Virginia Offshore Wind; and Sunrise Wind and Empire Wind 1 off the coast of New York.
The financial markets responded swiftly. Orsted, a Danish energy company that is in charge of two of the projects, saw its stock drop more than 11%. The Coastal Virginia project’s principal developer, Dominion Energy, saw a 3.7% decline.
According to Orsted, the government warned that it would have to halt all work on the outer continental shelf for ninety days. The company said it is weighing its options. “Orsted is evaluating all options to resolve the matter expeditiously, together with its partners,” it said. “This includes engagement with [the Bureau of Ocean Energy Management] and other permitting agencies as well as the evaluation of potential legal proceedings.”
Connecticut Gov. Ned Lamont said he spoke with Burgum, who told him concerns centered on potential interference with ground-based radar systems. “He said, ‘We’ll try and get to the bottom of this as soon as we can, but probably everything’s got to stop in the meantime,’” Lamont said. Lamont added, “I just think they’re making stuff up and it’s a really tough group to do business with.”
Dominion defended its project as vital to national interests, calling it “essential for American national security” and for meeting Virginia’s surging power demand. The company said the pause would last 90 days. “This growth is driven by the need to provide reliable power to many of America’s most important war fighting installations, the world’s largest warship manufacturer, and the largest concentration of data centers on the planet as well as the leading edge of the AI revolution,” Dominion said.
Featured Image Credit: Jem Sanchez; Pexels: Thank you!
