Renewable Stocks Jump After Trump Allows New York Offshore Project Resumption

Shares of European renewable energy companies surged Tuesday after New York Governor Kathy Hochul announced that, following weeks of negotiations with President Trump and Interior Secretary Doug Burgum, the month-long stop-work order on the $5 billion Empire Wind project off the state’s coast has been lifted. Reuters reported that the move could pave the way for the Trump administration to revisit plans for expanding natural gas pipelines in New York.

“After countless conversations with Equinor and White House officials, bringing labor and business to the table to emphasize the importance of this project, I’m pleased that President Trump and Secretary Burgum have agreed to lift the stop work order and allow this project to move forward,” Democratic Gov. Hochul wrote in a statement. 

She continued, “Now, Equinor will resume the construction of this fully permitted project that had already received the necessary federal approvals. I also reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements under New York law. To ensure reliability and affordability for consumers, we will be working earnestly to deliver on these objectives.” 

News of Equinor’s Empire Wind project’s resumption alleviated uncertainties for investors: Denmark’s Orsted AS jumped 16%, the most in three years, and Vestas Wind Systems increased 6.5% in Copenhagen. Equinor rose 1.5%. 

Jefferies analyst Ahmed Farman said the Empire Wind project is a positive read-across for Orsted. He said the stop-work order had “significantly raised market concerns” for Orsted’s Revolution Wind and Sunrise Wind projects. The analyst reiterated a “Hold” rating on the stock.

The resumption ”shows it is possible and useful to discuss questions with the Trump administration,” Norway’s Finance Minister Jens Stoltenberg told Bloomberg via a telephone interview. 

Morgan Stanley analyst Robert Pulleyn said today’s news will relieve Orsted shares “on the increased likelihood these projects are delivered.”

Pulleyn said the lack of a “clear rationale” for the halt order on Equinor’s Empire Wind project had heightened investor uncertainty surrounding Orsted’s two U.S. projects currently under construction. He reiterated an Equal-weight rating on Orsted. 

As measured by the iShares Global Clean Energy ETF (ICLN), the broader clean tech sector has retraced to levels last seen before the Covid pandemic. The space was propped up with cheap money from the Federal Reserve and the Biden-era Inflation Reduction Act. 

Meanwhile, the Trump administration is bringing back common-sense energy policies that prioritize reliable fossil fuel power generation, such as natural gas and coal. The world learned that solar and wind create instabilities, especially several weeks ago when Spain achieved a net-zero death.