Offshore wind developer US Wind has warned that a federal decision to revoke key permits for its Maryland Offshore Wind Project could push the company into bankruptcy, according to court documents filed in an ongoing legal dispute.
The warning comes in response to efforts by the administration of former U.S. President Donald Trump to withdraw the Construction and Operations Plan (COP) for the proposed project, which has a capacity of up to 2.2 gigawatts.
“If the COP is lost, surrendered, forfeited, revoked or otherwise not maintained in full force and effect, US Wind’s investors have the right to declare US Wind to be in default on the repayment of the Company’s debt and/or refuse to extend the additional financing needed to complete construction of the Project,” the company said in its filing. “Either of these consequences could result in US Wind’s bankruptcy.”
The company has requested a preliminary injunction to halt the federal government’s September decision to revoke the COP. The injunction seeks to preserve the project’s permitting status while a legal challenge brought by the municipality of Ocean City, Maryland, is resolved.
The Maryland Offshore Wind Project is part of broader efforts to expand offshore wind energy capacity along the U.S. East Coast, but it has faced opposition from local officials and legal hurdles related to federal permitting.
US Wind said continued uncertainty over the project’s regulatory status could jeopardize financing arrangements and delay construction.
