Danish renewable energy firm Ørsted plans to raise DKK60 billion (€8 billion) through a rights issue, backed by the Danish state, after abandoning plans to partially divest its Sunrise Wind offshore wind project in the United States.
The company cited “material adverse” market developments in the U.S. offshore wind sector, which made it “impossible to conclude the planned partial sale and associated non-recourse project financing on terms that would strengthen its balance sheet,” Ørsted said in a statement on Monday.
Ørsted CEO Rasmus Errboe told analysts the change in plans followed a stop-work order issued earlier this year by the Trump administration against Equinor’s Empire Wind project, which had created financing uncertainties. The order has since been lifted.
“Until that, the debt package for Sunrise was oversubscribed and negotiations with equity partners were underway,” Errboe said.
The planned rights issue will give existing shareholders pre-emptive rights to maintain their stakes. The Danish State, which owns 50.1% of Ørsted, has committed to taking up its full entitlement. Any remaining shares will be underwritten by Morgan Stanley & Co. International plc.
Ørsted said the funds will strengthen its capital structure through 2027, supporting the construction of its 8.1 gigawatt offshore wind pipeline and safeguarding its investment-grade credit rating.
The capital raise is also intended to finance Ørsted’s full ownership of Sunrise Wind and support its ongoing construction and operational activities, the company added. It will allow the developer to time future asset sales more strategically.
“Given the unprecedented regulatory development in the US, we have made a comprehensive assessment of all options,” said Ørsted Chair Lene Skole. “The planned rights issue is the best path forward for the company and its stakeholders.”
Ørsted’s total investment plan has been raised from DKK130 billion to DKK145 billion for 2025–2027, due to increased ownership of the Sunrise Wind project and rising project costs. The failure to divest the U.S. asset means Ørsted must now fund the project entirely on balance sheet, creating an incremental capital requirement of approximately DKK40 billion.
The company will continue with divestments, including progressing the farm-down of the Changhua 2 and Hornsea 3 offshore wind farms, as well as launching the sale of its European onshore wind and solar assets. Ørsted expects to generate over DKK35 billion from asset sales during 2025–2026.
Despite the headwinds, Ørsted reiterated its commitment to offshore wind, particularly in Europe.
“Ørsted and our industry are in an extraordinary situation with the adverse market development in the US on top of the past years’ macroeconomic and supply chain challenges,” said Errboe. “To deliver on our business plan and commitments in this environment, we’ve concluded that a rights issue is the best solution.”
Ørsted updated its medium-term financial targets, projecting EBITDA (excluding new partnerships and cancellation fees) of more than DKK28 billion in 2026 and over DKK32 billion in 2027. Return on capital employed is expected to average 11% between 2025 and 2027, rising above 13% from 2028 onward.
The company also confirmed plans to reinstate dividends starting with the 2026 financial year.
An extraordinary general meeting will be held on September 5 to seek shareholder approval for the rights issue.
