— Orsted and its joint-venture partner filed a federal lawsuit seeking to overturn a Bureau of Ocean Energy Management stop-work order that on Aug. 2025 halted construction of the nearly finished Revolution Wind offshore project off Rhode Island.
Key Takeaways
- Revolution Wind, a $6.2 billion, 65-turbine project, was about 80% complete when the Bureau of Ocean Energy Management (BOEM) ordered work stopped.
- Developers say they have spent roughly $5 billion and face about $1 billion in immediate penalties plus lost future revenue if the project is canceled.
- The suit, filed in U.S. District Court for the District of Columbia, argues the stop-work order was arbitrary, capricious and influenced by political pressure.
- Connecticut and Rhode Island attorneys general plan a separate challenge in federal court in Rhode Island.
- The White House cited national security concerns in BOEM’s letter but provided no public details; agency officials declined to comment on pending litigation.
- The move follows earlier pauses on other projects, including Empire Wind, and broader administration efforts to scrutinize offshore wind permits.
Verified Facts
Revolution Wind, a joint venture between Orsted and Skyborn Renewables, began construction in 2023 and was expected to supply power for more than 350,000 homes in Rhode Island and Connecticut by spring 2026. The developers say the project comprises 65 turbines and that financing and federal permits were already secured under the prior administration.
The developers’ complaint filed Sept. 4, 2025 in the U.S. District Court for the District of Columbia asks the court to block enforcement of the stop-work order. The filing contends BOEM’s directive was issued without the customary written explanation and that the agency acted unlawfully and in bad faith.
Orsted says it has already invested about $5 billion and that continuing the pause would trigger approximately $1 billion in contractual or financing penalties, alongside the loss of billions in projected revenue if the project is ultimately canceled.
State officials from Connecticut and Rhode Island announced parallel legal action in Rhode Island federal court to overturn BOEM’s order. Governor Ned Lamont emphasized the project’s role in regional energy planning while saying the administration had not adequately justified the halt.
Context & Impact
The stop-work order is part of a broader administration campaign to reassess and in some cases block offshore wind projects. Officials have directed multiple agencies to evaluate wind leasing, permitting and purported risks, including potential national security and environmental impacts.
Earlier this year the Interior Department paused work at Empire Wind off New York; that pause lasted several weeks and drew warnings from developers about large weekly losses. The federal government has also moved to rescind approvals for the New England Wind project near Martha’s Vineyard.
Legal experts note that regulators can pause projects for national security reasons, but standard procedure generally requires a documented basis and dialogue with developers before an abrupt stop. Elizabeth Klein, who formerly led BOEM, said the agency normally provides written notification and engages with proponents when concerns arise.
- Regional energy: The delay threatens near-term clean energy targets for New England states and could raise short-term electricity costs.
- Industry effects: Multiple paused or rescinded projects increase regulatory risk and raise financing costs for offshore wind developers.
Official Statements
“The project is facing substantial harm from continuation of the stop-work order, and as a result, litigation is a necessary step.”
Revolution Wind developers
“President Trump’s day one executive order instructed agencies to review leases and permitting practices for wind projects.”
Taylor Rogers, White House spokeswoman
Explainer
Unconfirmed
- Specific national security details referenced by BOEM have not been publicly disclosed and remain unverified.
- Claims that the stop-work order was issued under direct White House political pressure are alleged in the complaint but not independently proven.
Bottom Line
The lawsuit escalates a high-profile clash between a major European developer and the U.S. government over offshore wind policy and regulatory process. Courts will now weigh whether BOEM followed legal requirements in pausing a project that was largely built and financed.
Outcome implications include immediate financial exposure for the developers, potential delays to New England clean-energy goals, and legal precedent on the scope of agency authority to halt permitted projects.
Sources
- The New York Times (reporting by Brad Plumer and Karen Zraick, Sept. 4, 2025)
- Bureau of Ocean Energy Management (BOEM)
- U.S. Department of the Interior
- Orsted
- U.S. Department of Justice
- Connecticut Attorney General / Rhode Island Attorney General