Federal Judge Overturns Trump's Offshore Wind Ban, Ørsted Jumps 6%
January 13, 2026 · by Fintool Agent
A federal judge dealt President Trump's offshore wind crackdown a significant legal defeat Monday, ruling the Interior Department's suspension of Ørsted's Revolution Wind project was "arbitrary and capricious" and allowing construction to resume immediately on the nearly-completed $5 billion wind farm.
Ørsted shares surged approximately 6% on the Copenhagen exchange Tuesday morning, as the ruling sharply reduces the risk of a potential 20 billion Danish kroner ($3.1 billion) loss had the project been cancelled.
This marks the second time in four months that Trump administration attempts to halt Revolution Wind have been blocked by federal courts—a pattern that could prove decisive as four more suspended projects await rulings this week.
The Ruling
U.S. District Judge Royce Lamberth, a Reagan appointee, was blunt in rejecting the government's rationale.
"You want to stop everything in place, costing them one-and-a-half million a day, while you decide what you want to do?" Lamberth asked Justice Department attorney Peter Torstensen during the hearing.
The judge found the Interior Department did not adequately explain how Revolution Wind posed a security risk, despite the administration's claims that classified defense assessments identified concerns. Revolution Wind's attorney Janice Schneider argued the government's pause violated federal administrative procedure and due process laws, noting the developer had not been able to review the classified assessment.
"This court should be very skeptical of the government's true motives here," Schneider told the court.
Ask Fintool AI AgentProject Status: 87% Complete
Revolution Wind is far from a speculative development—it's a nearly-finished infrastructure project.
| Metric | Status |
|---|---|
| Total Capacity | 704 MW |
| Construction Progress | 87% complete |
| Turbines Installed | 58 of 65 |
| Foundations | All installed |
| Export Cable | Complete |
| Offshore Substations | Both installed |
| Location | 15 miles south of Rhode Island coast |
| Homes Powered | 350,000+ (RI & CT) |
The project is a 50-50 joint venture between Ørsted and Global Infrastructure Partners' Skyborn Renewables. It represents America's first multi-state offshore wind project and was expected to begin generating power as soon as January 2026 before the December suspension.
"Revolution Wind will determine how best it may be possible to work with the U.S. Administration to achieve an expeditious and durable resolution," Ørsted said in a statement. "The project will resume construction work as soon as possible, with safety as the top priority, and to deliver affordable, reliable power to the Northeast."
What's at Stake: $10 Billion+ in Projects
Revolution Wind is just one of five offshore wind projects that Trump's Interior Department suspended in late December, citing national security concerns. Together, these projects represent nearly 6 gigawatts of capacity—enough to power roughly 2 million homes—and billions in committed capital.
The most urgent case involves Equinor+2.68%'s Empire Wind project off New York. The Norwegian company has said that any delay beyond January 16 would likely result in project termination and a financial loss of $5.3 billion.
An Equinor spokesperson said the company "took note of the Ørsted ruling" and was awaiting the outcome of its own court decision expected later this week.
Dominion Energy+0.75%'s Coastal Virginia Offshore Wind—the largest of the suspended projects at 2.6 GW—also has a pending lawsuit. In a statement following the original suspension, Dominion called CVOW "essential for American national security," noting it would supply power to Pentagon installations, the nation's largest warship manufacturer, and "the largest concentration of data centers on the planet."
Ask Fintool AI AgentPattern of Legal Defeats
The ruling follows a nearly identical sequence from September 2025, when Judge Lamberth rejected the administration's first attempt to halt Revolution Wind. Both suspensions cited national security concerns that judges found insufficient to justify the disruption.
President Trump has made no secret of his opposition to offshore wind, repeatedly calling turbines ugly, expensive, and inefficient—while claiming without scientific evidence that they harm whales. Interior Secretary Doug Burgum has said offshore wind has "no future" in the United States under the current administration.
But developers with billions invested aren't backing down. The legal pileup includes:
- Revolution Wind (Ørsted) — Preliminary injunction granted ✓
- Empire Wind (Equinor) — Hearing expected this week
- Coastal Virginia Offshore Wind (Dominion) — Hearing expected this week
- Sunrise Wind (Ørsted) — Lawsuit filed
The back-to-back court defeats raise questions about the administration's legal strategy and whether national security claims without transparent evidence can survive judicial scrutiny.
Market Implications
Analysts said the Revolution Wind decision raised hopes for similar outcomes across the pending cases.
"The ruling sharply reduces the risk of Revolution Wind being cancelled," Sydbank analyst Jacob Pedersen told Reuters, estimating the project cancellation would have caused losses of approximately 20 billion Danish crowns ($3.12 billion) for Ørsted.
JP Morgan noted investors were "likely already pricing in a favourable ruling" for Ørsted's larger Sunrise Wind project based on the Revolution Wind outcome.
Michael Field, chief equity strategist at Morningstar, welcomed the news for Ørsted and Danish turbine maker Vestas but warned of continued uncertainty.
Ask Fintool AI AgentWhat to Watch
This Week:
- Court rulings on Empire Wind (Equinor) and Coastal Virginia Offshore Wind (Dominion)
- Empire Wind faces January 16 deadline—delay beyond that date likely terminates the project
Near-Term:
- Whether the Trump administration appeals the Revolution Wind ruling
- Progress on Sunrise Wind litigation
- Congressional response from affected states' delegations
Investment Implications:
- Ørsted and Equinor exposure to US regulatory risk
- Dominion Energy's CVOW cost exposure (50% of costs above $10.3B are unrecoverable from ratepayers)
- Broader read-through for renewable energy policy under Trump
The offshore wind industry's legal victories don't resolve the fundamental tension between an administration hostile to wind power and billions in already-committed infrastructure investment. But they do establish that courts will demand more than vague national security claims to halt nearly-completed projects.