Ørsted Clears Final Legal Hurdle for US Offshore Wind Expansion

US DOJ appeal deadline passes for Sunrise Wind, removing final legal barrier. Ørsted accelerates projects, targets over 28B DKK EBITDA and a 2026 dividend resumption.

A significant legal overhang on Ørsted's US offshore wind operations has now been fully resolved. The deadline for the US Department of Justice to file an appeal against the court injunction related to the Sunrise Wind project passed on April 3, 2026, with no action taken. This development removes the last major judicial uncertainty, providing final regulatory clearance for both of the Danish energy group's flagship US offshore ventures.

Financial and Operational Outlook Strengthens

With this legal clarity, Ørsted is poised to accelerate its operational build-out. The company's targets for the current fiscal year include commissioning over 2.5 GW of new offshore wind capacity across three continents. The 700-MW Revolution Wind project, which is already 87% complete, is scheduled for full grid connection in the second half of 2026.

The group's EBITDA goal for 2026 stands at more than 28 billion Danish kroner, marking a substantial increase from the previous year's result of 25.1 billion kroner. This projected growth is expected to be driven by new projects such as Gode Wind 3 and Borkum Riffgrund 3 in Germany, alongside a return to normalized wind speeds.

Project Security and Market Precedent

The 924-MW Sunrise Wind project had already resumed construction in February 2026 following a preliminary injunction, after the prior US administration imposed several construction halts in late 2025. The absence of an appeal from the Justice Department signals that work can proceed without further legal interruption.

For the Revolution Wind project, the appeal window had already lapsed earlier. Combined, these two initiatives are estimated to contribute approximately 15 percent of the group's consolidated EBITDA. Market observers note that the US government's payment of nearly one billion dollars to TotalEnergies to repurchase offshore licenses underscores that existing wind power contracts cannot be easily terminated, setting a strong market precedent.

Restructured Balance Sheet and Capital Return

Ørsted's financial position has been fundamentally transformed. Following an accelerated asset divestment program and a capital raise exceeding 60 billion kroner in 2025, net debt was slashed from 58 billion to 19 billion kroner. The ratio of funds from operations (FFO) to adjusted net debt reached 42.9%, providing a solid foundation for planned participation in upcoming offshore auctions in Denmark and Taiwan.

Management has indicated the anticipated resumption of dividend payments for the 2026 financial year. Gross investments are projected to be in the range of 50 to 55 billion kroner, with a strategic focus on Europe and the Asia-Pacific region. Having moved past its restructuring phase, Ørsted is now positioned to pursue returns-focused growth.