Trump halt on offshore wind power leases hits European companies

By Stine Jacobsen

COPENHAGEN (Reuters) -Shares successful European upwind powerfulness companies fell connected Tuesday aft U.S. President Donald Trump suspended offshore leasing for upwind connected his archetypal time successful office, adding to symptom successful an manufacture that had turned to the U.S. to assistance revive its fortunes.

The planetary offshore upwind manufacture has struggled to play the relation that galore governments had envisaged successful their plans to trim c emissions. Escalating costs, proviso concatenation issues and readying delays person deed the manufacture and led to task cancellations and delays.

Former President Joe Biden's greenish concern argumentation had provided enactment for the sector. Trump connected Monday suspended caller national offshore upwind leasing pending an biology and economical review, saying upwind turbines are ugly, costly and harm wildlife.

Denmark's Orsted (CSE:) was the biggest decliner, plunging 17% arsenic it took a $1.69 cardinal impairment complaint connected U.S. projects.

A hold and higher costs for Orsted's Sunrise Wind project, which erstwhile completed is expected to beryllium the largest U.S. offshore upwind farm, were the main crushed for the stock terms plunge, analysts said.

The institution besides flagged impairments connected seabed leases that could beryllium straight linked to Trump, Sydbank expert Jacob Pedersen told Reuters.

"Orsted present has immoderate assets successful the U.S. that are worthless. If determination is thing to beryllium built due to the fact that of Trump, Orsted tin neither merchantability nor usage the leases," helium said.

Other companies progressive successful the upwind manufacture besides fell.

Portugal's EDP Renovaveis (ELI:) shares fell by astir 1.6%, Germany's RWE (LON:) shed astir 0.5%, Norway's Equinor dropped by 2.2% and upwind turbine shaper Vestas fell by astir 3% successful day trade.

Italy's Prysmian (BIT:) connected Tuesday said it would wantonness a program to physique a works successful the U.S. to marque cables for offshore upwind parks. 

Prysmian's shares, which closed astatine a grounds precocious connected Monday, mislaid astir 1% connected Tuesday. 

Stocks successful atomic companies rallied connected Trump's enactment for boosting powerfulness supplies to conscionable the rising needs for information processing.

Stocks of U.S.-based uranium miners similar Energy Fuels (TSX:) and enCore Energy (NASDAQ:) roseate implicit 4%, portion atomic powerfulness companies similar inferior Vistra, Talen Energy and Constellation Energy (NASDAQ:) were up betwixt 4% and 8% successful the day trade.

Trump's vigor caput pick, Chris Wright, told U.S. senators successful his confirmation proceeding past week that his archetypal precedence would beryllium to grow home vigor accumulation including atomic powerfulness and liquefied .

RISK TO EXISTING US WIND POWER PROJECTS

The U.S. has astir 2.4 gigawatts (GW) of advanced-stage offshore upwind developments that person reached last concern determination and are nether construction. Those are improbable to beryllium impacted by the order, according to Rystad Energy.

The biology and economical reappraisal of existing offshore upwind leases could, however, airs immoderate hazard for developers of existing projects, analysts said.

The American Clean Power Association (ACP), a U.S. cleanable vigor manufacture group, said it powerfully opposed Trump's enforcement bid connected upwind leasing and permitting.

"States voting for President Trump are 8 of the apical 10 states successful presumption of reliance connected upwind powerfulness with galore depending connected upwind for a important stock of their energy use.  Restricting upwind improvement successful these regions is definite to summation user vigor bills," it said.

In 2024, the lipid and state manufacture donated $32.3 cardinal to Trump and groups affiliated to him, arsenic per information from OpenSecrets. In comparison, Trump was capable to rise conscionable $453,687 from the U.S. renewable sector.

The U.S. renewable manufacture contributed $2.9 cardinal successful governmental donations, with 78.7% of it going to Democrat candidates.

($1 = 0.9614 euros)