Denmark’s Ørsted: Wind power stocks plummet
– US power generation costs soar, recording impairment of 12.1 billion kroner
– Trump decides to stop leasing land for wind power
Summary from Bloomberg article.
Trump’s executive order:
President Trump announced that he would “stop leasing federal land for large-scale wind power generation.”
He indicated his intention to “stop federal land leasing” in the future.
Denmark’s Ørsted:
Denmark’s Ørsted is one of the world’s largest offshore wind power operators.
On January 20, the company recorded an impairment of 12.1 billion kroner (260 billion yen) for the fourth quarter of 2024.
The increase in construction costs is noticeable at offshore wind power facilities in the US.
CEO Mads Nipper:
The recording of impairments and the situation surrounding facility construction are very disappointing.
1. We want to meet the growing electricity demand in the United States with renewable energy.
2. Our wind power generation can create thousands of jobs across the United States.
Rising costs for the “Sunrise” wind power generation project
Various factors, including rising interest rates in the United States, led to the impairment.
The cost of the “Sunrise” wind power generation project off the east coast of Long Island has soared.
https://www.bloomberg.co.jp/news/articles/2025-01-21/SQF3TDT1UM0W00
Wind power in Europe: Offshore wind power-related stocks to fall across the board
Summary from Reuters article.
Trump’s order to halt land leasing:
On January 21, European wind power-related stocks fell across the board on the stock market.
On January 20, US President Trump signed an executive order to halt land leasing for offshore wind power generation projects.
Denmark’s Orsted Nightmare:
The biggest drop on the day was Denmark’s Orsted. Its shares fell 17%.
Sunrise Wind, the largest offshore wind farm in the US
1. Project costs and delays caused the project to fail.
2. Orsted owns assets in the US that are now worthless.
European wind power stocks: down across the board
1. Portugal: EDP Renova Veis (EDPR.LS), down 1.6%.
2. Germany: RWE (RWEG.DE), down 0.5%.
3. Norway: Equinor, down 2.2%.
Wind turbine manufacturer: Vestas (VWS.CO), down 3%.
Italy’s Prysmian (PRY.MI):
On January 21, it announced that it would cancel plans to build a US factory.
The company’s stock price had just reached a record high the previous day.
However, today it fell by around 1%.
CO2 reduction through offshore wind power generation:
Offshore wind power generation has not produced the expected results in reducing carbon dioxide (CO2) emissions.
1. Many projects have been unsatisfactory, leading to a series of cancellations and postponements.
2. It has not fully played the important role expected of it in Western countries.
Policy changes between the old and new administrations:
1. The previous Biden administration extended a helping hand to offshore wind power generation through its green investment promotion policy.
2. The new Trump administration has completely overturned the promotion policy of the previous Biden administration.
https://jp.reuters.com/markets/commodities/ECXY7RMAUJIJ5DKDTEIIZFTFFA-2025-01-22/