From the Wall Street Journal, September 1:
Equinor said its support reflects the competitiveness of offshore wind in the future energy mix
Equinor pledged to support Orsted’s rights issue by subscribing for up to $939 million of new shares.
The Danish wind-farm developer last month announced plans to raise $9.4 billion through a rights issue as it seeks new funds to shore up its balance sheet in response to industry challenges.
Orsted’s capital-raise plan comes as developments in the U.S. wind market disrupted the Danish renewable-energy company’s asset sale plans. Supply chain and construction challenges have previously hit U.S. projects, while the industry is also facing headwinds from a Trump administration that is opposed to wind energy. The U.S. government recently ordered Orsted to halt work on the Revolution Wind project, a key offshore wind farm off Rhode Island.
“As a long-term industrial shareholder, Equinor intends to participate in the rights issue and maintain its 10% ownership share in Orsted,” the Norwegian energy company said in a statement. “Ahead of the next annual general meeting, Equinor will also nominate a candidate to Orsted’s board of directors.”
Equinor said its support reflects confidence in Orsted’s underlying business, and the competitiveness of offshore wind in the future energy mix in selected geographies. It also said a closer industrial and strategic collaboration with Orsted can create value for all shareholders in both companies.
Equinor was itself subject to a stop-work order on an offshore wind project from the U.S. administration earlier this year. It was forced to halt construction of the Empire Wind project off the New York coast after officials suggested the Biden administration had rushed the project’s approval without sufficient analysis....
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