Ørsted Initiates EUR 8 Billion Rights Issue to Build Sunrise Wind, Cover Revolution Wind Halt Impact

Since the developer was unable to secure a partial divestment of Sunrise Wind and the associated project financing, as per its usual business model, Ørsted needs to fund the construction of the entire 924 MW offshore wind project on its own balance sheet, which requires an incremental funding of approximately DKK 40 billion (around EUR 5.4 billion), according to the developer.

The remaining net proceeds of approximately DKK 20 billion (approx. EUR 2.7 billion) will be used to strengthen the company’s capital structure and enhance financial flexibility, helping ensure appropriate capitalisation for 2025 to 2027, the period during which Ørsted plans to deliver its 8.1 GW offshore wind construction portfolio.

This includes helping to cover the impact of the recently issued Revolution Wind stop-work order or other risks that may materialise, Ørsted said on 15 September.

“Ørsted is currently constructing 8.1 GW of offshore wind, which, when commissioned, will contribute approximately DKK 11-12 billion in annual earnings (EBITDA) by 2028. Our focus will predominantly be on our core markets in Europe where there’s continued strong support for offshore wind. With 30 years of experience in offshore wind, Ørsted is in a strong position to deliver on Europe’s offshore wind ambitions, strengthening Europe’s ability to deliver clean, secure, and affordable energy”, said Trond Westlie, CFO of Ørsted.

According to information released by the developer earlier, the total investment in Sunrise Wind and Revolution Wind, on a 100 per cent basis, is expected to be approximately DKK 100 billion (around EUR 13.4 billion; USD 15.7 billion).

The remaining share of Ørsted’s investments into the projects is approximately DKK 45 billion (around EUR 6 billion; USD 7 billion). The investment required to complete the almost-finished Revolution Wind offshore wind farm, for Ørsted’s 50 per cent share of the project, amounts to approximately DKK 5 billion (around EUR 670 million; USD 783 million).

The 704 MW Revolution Wind project, which Ørsted owns in a 50/50 joint venture with Skyborn Renewables, received a federal stop-work order on 22 August.

The offshore wind farm, which is contracted to provide electricity to Connecticut and Rhode Island, has reached 80 per cent of completion, with 20 out of the total 65 wind turbines and the offshore substation left to be installed.

At the Sunrise Wind site, located in the federal waters off New York, construction has already started, with the first foundations now installed. The first wind turbines at Sunrise Wind are expected to be installed in early 2026, with the offshore wind farm on track to be commissioned in the second half of 2027, according to a project update recently shared by Ørsted.

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