Interior Department Halts $1.5 Billion Offshore Wind Project Off Rhode Island

The U.S. Department of the Interior on Aug. 22 directed Danish company Orsted to halt all construction on Revolution Wind, the offshore wind farm off Rhode Island that is nearing completion.

In a letter, acting Bureau of Ocean Energy Management (BOEM) Director Matthew Giacona ordered Orsted to suspend all activities on the project while officials conduct a review to address “concerns related to the protection of national security interests.”

The stop work order is also intended to prevent “interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas,” the letter reads.

Giacona said Orsted “may not resume activities” until BOEM confirms that the review is complete, and that failure to comply with the order could prompt “corrective action.”

Orsted said it was evaluating all options, including engaging with permitting agencies to seek a resolution or pursuing legal proceedings, while also assessing the financial implications of the order.

“Revolution Wind is complying with the order and is taking appropriate steps to stop offshore activities, ensuring the safety of workers and the environment,” Orsted said in a statement. “Orsted is evaluating all options to resolve the matter expeditiously.”

Revolution Wind is a $1.5 billion project that was scheduled to be completed in 2026 and was expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut.

The project secured all required permits and BOEM approval under the Biden administration and is now 80 percent complete, with 45 out of 65 wind turbines installed, according to the company.

Erik Milito, president of the National Ocean Industries Association, said the project is already near completion and stopping work now could put jobs, contracts, and surrounding communities at risk.

“These projects are not only about energy,” Milito said in a statement. “They advance priorities of the administration by restoring American manufacturing, strengthening shipbuilding, modernizing ports, and building the reliable power needed to support data centers and [artificial intelligence] innovation.”

Orsted, Denmark’s largest energy company, is largely owned by the Danish government, with a 50.1 percent stake. Earlier in August, the company sought $9.4 billion from shareholders to help fund its Sunrise Wind project off the coast of New York state.

In April, Interior Secretary Doug Burgum ordered a pause on Equinor’s Empire Wind project off New York state’s coast for review, citing insufficient analysis when it was approved. New York Gov. Kathy Hochul later said the Trump administration had agreed to lift the stop work order.

About 30 percent of the project has already been completed, the Norway-based company said in May. The project, located 15 miles to 30 miles southeast of Long Island, is expected to start generating electricity in 2027.

Reuters contributed to this report.