The picture on September 4, 2023 shows windmills on the offshore wind farm in Nysted, which was built in the Baltic Sea near Gedser in Denmark by Danish wind turbines in the Baltic Sea in 2002-2003.
Thomas Traasdahl | AFP | Getty pictures
Norwegian oil giant Equinor On Monday, Denmark’s Orsted promised almost 1 billion US dollars of fresh capital and supported the besieged company in persistent attacks on offshore wind projects from the Trump administration.
In an obvious exhibition of trust in the world’s largest offshore developers, Equinor intended to take part in the 60 billion Danish crown rights (9.4 billion US dollars) planned, and said, it intended to take his 10% property in the company.
According to Equinor, his strategic support for the right problem reflects confidence in the underlying business of Orsted and the competitiveness of the offshore wind in the future energy mix. The state -supported Norwegian energy group is the second largest shareholder in Orsted behind the Danish government.
As part of the move, Equinor said that a candidate for the Board of Directors of Orsted would nominate.
Orsted’s shares rose by 3.6% in the news before the profits are available. The share price, which has dropped by almost 90% compared to 2021, achieved a new record low last month after the Trump government had applied the company to stop working on an almost complete wind farm.
The Equinor shares recently became 0.2% higher on Monday morning.
Both companies navigated challenges in the offshore wind industry in the offshore wind industry, and Equinor explains that it is closely monitoring developments in the USA, and intends to remain in dialogue with Orsted.
The wind industry has been a goal for US President Donald Trump since its first day of office. The latest blow came on Friday when the US Transport Ministry canceled 679 million US dollars In the case of federal financing for a dozen infrastructure projects that would support the offshore wind power nationwide.
“Waste, wind projects use resources that could otherwise be revived by American maritime industry,” said transport secretary Sean Duffy in an explanation.
Analysts from RBC Capital Markets said that Equinor’s step to support Orsted could be viewed as the first step for the company, which takes into account the possibility of a potential fusion between the two offshore wind portfolios.
“The challenge in full participation is that the company will effectively increase its net engagement in two 100%-neis-offshore wind projects, of which neither has decreased to a short time and that political support is still uncertain,” said analysts of RBC Capital Markets in a research remote.
“The incremental positive is that the Equinor will now have the representation of the board, in addition to its waiting participation, which optimally uses the challenging situation,” they added.
Spokesman for Equinor and Orsted did not immediately respond to a CNBC request for comments.
– Spencer Kimball & Ganesh Rao from CNBC contributed to this report.
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