The lawsuit, filed on 4/9, alleges that the Trump administration's decision to halt construction on the nearly complete Revolution Wind project is unlawful and in "bad faith."

Revolution Wind, an offshore wind project off the coasts of Rhode Island and Connecticut, is 80% complete. Forty-five of the 65 wind turbines have been installed, and the project is expected to power over 350,000 homes in the two states.

Part of the Revolution Wind project. Photo: Revolution Wind

Part of the Revolution Wind project. Photo: Revolution Wind

Late last month, the US Department of the Interior abruptly ordered Orsted to stop construction, citing unspecified national security concerns. Orsted and its partner Skyborn Renewables have already invested about USD 5 billion in the project and estimate an additional USD 1 billion cost if the stop-work order remains in effect.

Orsted filed suit in federal court in the District of Columbia against Secretary of the Interior Doug Burgum and other officials, asking the court to overturn the decision.

Rhode Island and Connecticut also filed a joint lawsuit in federal court in Rhode Island. "This kind of erratic, reckless governance is illegal, and we're taking them to court to put a stop to it," said Connecticut Attorney General William Tong.

A spokesperson for the Department of the Interior declined to comment on the litigation.

Orsted and Skyborn stated that specialized vessels for offshore wind construction are limited. If the vessels leave due to the Trump administration's decision, the project could be delayed by at least a year and potentially canceled.

According to Orsted's records, Revolution Wind has undergone nearly a decade of environmental and safety reviews costing over USD 100 million. Based on thousands of pages of data, federal agencies have concluded that the project is "environmentally sound and complies with federal law," the company said.

The timing of the project's shutdown is particularly damaging for Orsted. The company announced plans last month to raise 60 billion crowns (USD 9.41 billion) through a rights issue. Its shares hit a record low on 25/8 following the stop-work order.

Orsted's lawyers argued in court, "The president has a clear animus towards offshore wind, including statements made during his campaign."

Since taking office, Mr. Trump has targeted the wind industry, issuing orders closing federal waters to new projects. However, the renewable energy sector maintains that already-permitted projects like Revolution Wind should be allowed to proceed.

Earlier this month, the president announced he would not approve any solar or wind projects and canceled USD 679 million in funding for dozens of infrastructure projects supporting the offshore wind industry.

Bao Bao (Reuters, CNBC)