You’re out of free articles.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
Sign In or Create an Account.
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Welcome to Heatmap
Thank you for registering with Heatmap. Climate change is one of the greatest challenges of our lives, a force reshaping our economy, our politics, and our culture. We hope to be your trusted, friendly, and insightful guide to that transformation. Please enjoy your free articles. You can check your profile here .
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Subscribe to get unlimited Access
Hey, you are out of free articles but you are only a few clicks away from full access. Subscribe below and take advantage of our introductory offer.
subscribe to get Unlimited access
Offer for a Heatmap News Unlimited Access subscription; please note that your subscription will renew automatically unless you cancel prior to renewal. Cancellation takes effect at the end of your current billing period. We will let you know in advance of any price changes. Taxes may apply. Offer terms are subject to change.
Create Your Account
Please Enter Your Password
Forgot your password?
Please enter the email address you use for your account so we can send you a link to reset your password:
A conversation with Manjula Martin about her new book The Last Fire Season.
When Manjula Martin was growing up in Northern California in the 1980s, wildfires weren’t something she thought about much. She knew about disaster — the magnitude 6.9 Loma Prieta earthquake of 1989, which killed 63 people and injured thousands, hit when she was a teenager — but fire, she thought, was just something that happened up in the mountains in the summer.
Things are different now. In 2017, Martin left the high prices of San Francisco for the redwoods of Sonoma County. The night of their housewarming party, a firestorm swept through Santa Rosa and Sonoma and Napa counties. The next year — 5 years ago this week — the Camp Fire, the deadliest and most destructive fire in the state’s history, destroyed the town of Paradise and killed 85 people.
In her new book, The Last Fire Season (out on January 16 next year), Martin writes about the fires that swept through California in 2020, weaving her personal story with that of fire in California writ large. It’s a beautiful book, and I called her up to talk about her relationship with fire and how we can learn to live with the changing world. Our conversation has been edited for length and clarity.
The book opens in 2020, which was a year of multiple fire complexes. Was that the first time fire made itself known in the immediate vicinity of your home?
No, it wasn’t. But it was the first time that I realized that it wasn’t an anomaly.
We had horrible fires near my area in 2017. In 2018, the Camp Fire happened in Northern California, which was like a four-hour drive away, but the smoke from that fire lingered in the Bay Area for weeks. And then in 2019, the Kincade fire was a huge fire up here in Sonoma, and the entire west of the county was evacuated in basically the course of a night, including ourselves.
Then in 2020, the Lightning Complex fires happened in late August, which is what the book starts with. And that was the moment where I personally was like, “oh, this is going to keep happening.”
Before that a natural disaster to me felt like a thing that happened once and then that’s it, right? It wasn’t connected to larger things for me. But the fact is that the new wildfires that we’re having are bigger and hotter and far more destructive than the previous wildfires we’ve had, and 2020, which is probably far too late, was the year that I personally put that all together under the name of climate change. It wasn’t the first year I knew about fire, but it was the moment I realized that I was going to be living with fire for the rest of my life.
I was struck by your description of the 2020 fires and the ways that COVID complicated your experience of them. It reminded me of the concept of cascading events; it was striking to read about how your go bag was filled with these N95 masks that were there for the sake of the fires, but also, of course, turned out to have utility for this other thing that you’re dealing with at the same time.
That was one of the reasons why I chose to center the book around 2020. I think that was a moment where it became clear for a lot of people that disasters don’t take their turn. When it was happening, I felt it was a historic moment.
You named your book The Last Fire Season. But, of course, it wasn’t the last.
Unfortunately not. The book began as an essay, and since I was writing it in 2021 I thought I was writing about the last fire season I had experienced. But then I realized that it was actually a really great title for a book. It’s pretty commonly acknowledged now that in the North American West, fire season isn’t really a thing anymore. Now fire authorities talk about having a fire year.
That is directly linked to the changing of the weather and the climate. But for me, the deeper meaning of it is this idea that fire being seasonal also sort of implies that it’s temporary, and that it’s going to go away. But really it’s not seasonal, it’s part of this land. And we’re going to be living with it forever.
There’s a point in your book where you write that the California ecosystem was fire-adapted, but also that fire is changing. What do you mean by that?
Since time immemorial, California’s ecosystems — from oak woodlands to redwood forests to grasslands and chaparral — evolved with fire as part of their natural cycle. Fire is actually something that helps the cycle of the landscape reset and continue.
And this was something that Indigenous people knew and really sort of harnessed and used in the way that they tended the lands. But the genocide of Indigenous people in California really sort of stopped that cycle, as is the case with colonialism in most places.
Right, you have a chapter about the Indigenous history of fire in California and the suppression of fire both through violence against Indigenous communities and also a long history of policies against fire.
Yeah, the colonial policies of managing the land in California had been what they call ”total fire exclusion,” which is basically the idea that all fire is bad and we need to extinguish fires right away. There was a policy in place called the 10 AM policy that actually said every new forest fire needs to be extinguished by 10 AM the next morning. And, you know, there are a lot of reasons why that happened, including profits and fear and prioritizing human habitat and recreation over the landscape. But the result is that the landscapes here are actually neglected at this point, 150 years after colonization.
You wrote at one point about going to prescribed burns and there was a section that really stood out to me:
Fire is exuberant. It’s joyous. It dances. I can see why people joke that all firefighters are secret pyros. It’s so much fun.
I fully relate to this feeling. Has going to prescribed burns changed your own relationship with fire?
Good fire and cultural fire, which is generally the term we use when we’re talking about Indigenous use of fire, have radically changed my feelings about fire. Humans have evolved with fire, and the more I engage with fire, the more I learn about it, the more I understand its role in both the land and the history of this place, the less afraid I feel.
You write about your own experience with getting a hysterectomy and how that affected your life afterwards, and I thought that was an interesting choice. You could have written a book that was just about fire, and we could have never learned about your hysterectomy. But you chose to include it. Can you tell me a little bit about how that came to happen?
I could have written a straight journalistic look at wildfire right now or at the 2020 fire season specifically. And that was something I toyed with. But I ultimately realized, in thinking about this idea of cascading disasters, that they’re all happening while people are living their lives. Climate change, wars, economic ruin are all happening on top of whatever else is going on in your life. So I thought this part of my life was worth including.
The hysterectomy, and many associated health crises, led me to having chronic pain. And one of the only things that helped me with that was gardening. For me, the physical act of literally touching the land, being in this dialogue with the environment and the ecosystem around me, was the thing that helped me recover from this health crisis. I wasn’t quite well. And more importantly, nature wasn’t quite well. And gardening in this environment is what really made it click for me that this environment is going through a crisis as well.
That garden was partly how you knew about the oncoming fires in 2020, right?
Yeah, when the Lightning Complex fires started, I was out in my garden watering the roses. I saw this little black object on the ground, and when I leaned down and picked it up I saw it was a leaf of a California bay laurel tree. And it was burned black, but it was still whole. It had been blown on the wind and landed in my garden. It was sort of like a messenger, telling me that a few miles away these trees were burning.
Bay trees are a natural part of the forest understory here, but they are highly flammable. They’re basically made of oil, and they serve as what’s called a ladder fuel; if fire gets in that tree, it will shoot up it and then can get into the crowns of taller trees like redwoods or oaks that would normally be more fire resistant. It’s literally a fire spreader. Anyone who lives in the area will tell you that when there’s a fire nearby it rains burnt leaves.
Parts of the book are unexpectedly written in the past tense. You write, for example, that “Northern California was a very large place,” but the depictions of events in the past or future are written in the present tense. Was that intentional? Did you mean to contract the idea of Northern California?
I absolutely did. The convention in nonfiction is to write events in the past tense, but to phrase facts, or things that are still true, in the present tense. I felt like it was important to acknowledge that the things we take as granted, these truths about the way the environment works, might not always remain that way. It was also partly a pragmatic decision, because I didn’t know what would happen before the book came out. What if my house burned down before that, or if I have to move? Things are just so chaotic right now.
The other time I break with convention is when I write about Indigenous nations and Indigenous management practices. I intentionally used the present tense there as a way to push back against the trope of a lot of non-Indigenous writers portraying Indigenous people and worldviews as extinct when in fact they’re very, very alive.
Throughout the book you’re constantly talking to your partner about whether to stay in your home or move away to a “safer” area. I think it can be really hard for people who don’t live in areas under threat to grasp just how hard the concept of migrating really is.
Right, that’s such a common binary: to stay or go. And the reality is actually a lot messier. I’m fortunate to even have the choice of whether to stay or go; I am a person who has a lot of different privileges. I have resources, I have friends, I’m educated, I’m white.
Most people don’t willingly leave their homes unless things are really bad. But it’s never really all bad: Sometimes there’s extreme weather and disasters, and then there isn’t. It’s up and down. There’s a lot of talk around what the perfect solution is, where the safe places are. And the truth is that nowhere is safe because of climate change.
For me, the point of living at this moment on this planet is that it’s messy. It’s full of grief, it’s full of joy and beauty, and it’s also dangerous. There may be a time when I leave this place, for a variety of reasons. But I think the idea that you can run away from climate change is false.
Something I’ve learned a lot from talking with people who are deeply connected to the land here and who work with fire is that you have a responsibility to the place where you live. If I love this place so much, what do I owe it? The idea of tending a place for its overall health, not just for my personal survival, is very powerful.
Right, at one point you write about you and your partner thinking about doing prescribed burns in the woods near you to help reduce the risk of more fires.
We have thought a lot about the idea of reintroducing good fire where we live. Our neighborhood has been getting together and doing work days where we clear fuels from the forest floor together. And it’s really proof of how much work is needed, because you can clear brush and cut dead limbs off trees for a day with a group of 15 people, and then you look at this tiny quarter acre that you’ve worked on, and it still needs so much more work.
Stewardship is a constant act.
Absolutely. And it might not be perfect, and honestly it might not make a difference. These woods might still burn. But if and when they do burn, they are going to be healthier afterwards because the fire is going to be healthier.
Log in
To continue reading, log in to your account.
Create a Free Account
To unlock more free articles, please create a free account.
The assembly line is the company’s signature innovation. Now it’s trying to one-up itself with the Universal EV Production System.
In 2027, Ford says, it will deliver a $30,000 mid-size all-electric truck. That alone would be a breakthrough in a segment where EVs have struggled against high costs and lagging interest from buyers.
But the company’s big announcement on Monday isn’t (just) about the truck. The promised pickup is part of Ford’s big plan that it has pegged as a “Model T moment” for electric vehicles. The Detroit giant says it is about to reimagine the entire way it builds EVs to cut costs, turn around its struggling EV division, and truly compete with the likes of Tesla.
What lies beneath the new affordable truck — which will revive the retro name Ford Ranchero, if rumors are true — is a new setup called the Ford Universal EV Platform. When car companies talk about a platform, they mean the automotive guts that can be shared between various models, a strategy that cuts costs compared to building everything from scratch for each vehicle. Tesla’s Model 3 and Model Y ride on the same platform, the latter being essentially a taller version of the former. Ford’s rival, General Motors, created the Ultium platform that has allowed it to build better and more affordable EVs like the Chevy Equinox and the upcoming revival of the Bolt. In Ford’s case, it says a truck, a van, a three-row SUV, and a small crossover can share the modular platform.
At the heart of the company’s plan, however, is a new manufacturing approach. The innovation of the original Model T was about the factory, after all — using the assembly line to cut production costs and lower the price of the car. For this “Model T moment,” the company has proposed a sea change in the way it builds EVs called the Ford Universal EV Production System. It will demonstrate the strategy with a $2 billion upgrade to the Ford factory in Louisville, Kentucky, that will build the new pickup.
In brief, Ford has embraced the more minimalist, software-driven version of car design embraced by EV-only companies like Tesla and Rivian. The vehicles themselves are mechanically simpler, with fewer buttons and parts, and more functions are controlled by software through touchscreen interfaces. Building cars this way cuts costs because you need far fewer bits, bobs, fasteners, and workstations in the factory. It also reduces the amount of wiring in the vehicle — by more than a kilometer of the stuff compared to the Mustang Mach-E, Ford’s current most popular EV, the company said.
Ford is in dire need of an electric turnaround. The company got into the EV race earlier than legacy car companies like Toyota and Subaru, which settled on more of a wait-and-see approach. Its Mustang Mach-E crossover has been one of the more successful non-Tesla EVs of the early 2020s; the F-150 Lightning proved that the full-size pickup truck that dominates American car sales could go electric, too.
But both vehicles were expensive to make, and the Lightning struggled to make a dent in the truck market, in part because the huge battery needed to power such a big vehicle gave it a bloated price. When Tesla started a price war in the EV market a few years ago, Ford began hemorrhaging billions from its electric division, struggling to adapt to the new world even as carmakers like GM and Hyundai/Kia found their footing.
The big Detroit brand has been looking for an answer ever since, and Monday’s announcement is the most promising proposal it has put forward. Part of the production scheme is for Ford to build its own line of next-gen lithium-ion phosphate, or LFP batteries in Michigan, using technology licensed from the Chinese giant CATL. Another step is to employ the “assembly tree,” which splits the traditional assembly line into three parallel operations, which Ford says reduces the number of required workstations and cuts assembly time by 15%.
Affordability has always been a bugaboo for the American EV industry, a worry exacerbated by the upcoming demise of the $7,500 tax credit. And while Ford’s manufacturing overhaul will go a long way toward building a light-duty pickup EV that sells for $30,000, so too will a fundamental change in thinking about batteries, weight, and range. The F-150 Lightning isn’t the only pickup with a big battery and an even bigger price. That truck’s power pack comes in at 98 kilowatt-hours; large EV pickups like the Rivian R1T and Chevy Silverado EV have 150 or even 200 kilowatt-hour batteries, necessary to store enough power to give these heavy beasts a decent driving range.
InsideEVs reports, however, that the affordable Ford truck may have a battery capacity of just over 50 kilowatt-hours, which would dramatically reduce its cost to make. The trade-off, then, is range. The Slate small pickup truck that made waves this year for its promised price in the $20,000s would have just 150 miles of range in its cheapest form. Ford hasn’t released any specs for its small EV truck, but even using state-of-the-art LFP chemistry, such a small battery surely won’t deliver many more miles per charge.
Whatever the final product looks like, the new Ford truck and the infrastructure behind it are another reminder that, no matter the headwinds caused by the Trump administration, EVs are the future. Ford had been humming along through its EV struggles because its gas-burning cars remained so popular in America, and so profitable. But those profits collapsed in the first half of 2025, according to The New York Times. Meanwhile, Ford and every other carmaker are struggling to catch up to the Chinese companies selling a plethora of cheap EVs all over the world. Their very future depends on innovating ways to build EVs for less.
Governors, legislators, and regulators are all mustering to help push clean energy past the starting line in time to meet Republicans’ new deadlines.
Trump’s One Big Beautiful Bill Act put new expiration dates on clean energy tax credits for business and consumers, raising the cost of climate action. Now some states are rushing to accelerate renewable energy projects and get as many underway as possible before the new deadlines take effect.
The new law requires wind and solar developers to start construction by the end of this year in order to claim the full investment or production tax credits under the rules established by the Inflation Reduction Act. They’ll then have at least four years to get their project online.
Those that miss the end-of-year deadline will have another six months, until July 4, 2026, to start construction, but will have to meet complicated sourcing restrictions on materials from China. Any projects that get off the ground after that date will face a severely abbreviated schedule — they’ll have to be completed by the end of 2027 to qualify, an all-but-impossibly short construction timeline.
Adding even more urgency to the time crunch, President Trump has directed the Treasury Department to revise the rules that define what it means to “start construction.” Historically, a developer could start construction simply by purchasing key pieces of equipment. But Trump’s order called for “preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built,” an ominous sign for those racing to meet already accelerated deadlines.
While the changes won’t suppress adoption of these technologies entirely, they will slow deployment and make renewable energy more expensive than it otherwise would have been. Some states that have clean energy goals are trying to lock in as much subsidized generation as they can to lessen the blow.
There are two ways states can meet the moment, Justin Backal Balik, the state program director at the nonprofit Evergreen Action, told me. Right now, many are trying to address the immediate crisis by helping to usher shovel-ready projects through regulatory processes. But states should also be thinking about how to make projects more economical after the tax credits expire, Balik said. “States can play a role in tilting the scale slightly back in the direction of some of the projects being financially viable,” he said, “even understanding that they’re not going to be able to make up all of the lost ground the incentives provided.”
In the first category, Colorado Governor Jared Polis sent a letter last week to utilities and independent power producers in the state committing to use “all of the Colorado State Government to prioritize deployment of clean energy projects.”
“Getting this right is of critical importance to Colorado ratepayers,” Polis wrote. The nonprofit research group Energy Innovation estimates that household energy expenses in Colorado could be $170 higher in 2030 than they would have been because of OBBB, and $310 higher in 2035. “The goal is to integrate maximal clean energy by securing as much cost-effective electric generation under construction or placed in service as soon as possible, along with any necessary electricity balancing resources and supporting infrastructure,” Polis continued.
As for how he plans to do that, he said the state would work to “eliminate administrative barriers and bottlenecks” for renewable energy, promising faster state reviews for permits. It will also “facilitate the pre-purchase of project equipment,” since purchasing equipment is one of the key steps developers can take to meet the tax credit deadlines.
Other states are looking to quickly secure new contracts for renewable energy. In mid-July, two weeks after the reconciliation bill became law, utility regulators in Maine moved to rapidly procure nearly 1,600 gigawatt-hours of wind and solar — for context, that’s about 13% of the total energy the state currently generates. They gave developers just two weeks to submit proposals, and will prioritize projects sited on agricultural land that has been contaminated with per- and polyfluoroalkyl substances, the chemicals known as PFAS. (When asked how many applications had been submitted, the Maine Public Utilities Commission said it doesn't share that information prior to project selection.)
Connecticut’s Department of Energy and Environmental Protection is eyeing a similar move. During a public webinar in late July, the agency said it was considering an accelerated procurement of zero-carbon resources “before the tax increase takes effect.” The office put out a request for information to renewable energy developers the next day to see if there were any projects ready to go that would qualify for the tax credits. Officials also encouraged developers to contact the agency’s concierge permit assistance services if they are worried about getting their permits on time for tax credit eligibility. Katie Dykes, the agency’s commissioner, said during the presentation that the concierge will engage with permit staff to make sure there aren’t incomplete or missing documents and to “ensure smooth and efficient review of projects.”
New York’s energy office is planning to do another round of procurement in September, the outlet New York Focus has reported, although the solicitation is late — it had originally been scheduled for June. The state has more than two dozen projects in the pipeline that are permitted but haven’t yet started construction, according to Focus, and some of them are waiting to secure contracts with the state.
Others are simply held up by the web of approvals New York requires, but better coordination between New York agencies may be in the works. “I assembled my team immediately and we are trying to do everything we can to expedite those [renewable energy projects] that are already in the pipeline to get those the approvals they need to move ahead,” Governor Kathy Hochul said during a rally at the State University of New York’s Niagara campus last week. The state’s energy research and development agency has formed a team “to help commercial projects quickly troubleshoot and advance towards construction,” according to the nonprofit Evergreen Action. (The agency did not respond to a request for more information about the effort.)
States and local governments are also planning to ramp up marketing of the consumer-based credits that are set to expire. Colorado, for example, launched a new “Energy Savings Navigator” tool to help residents identify all of the rebate, tax credit, and energy bill assistance programs they may be eligible for.
Consumers have even less time to act than wind and solar developers. Discounts for new, used, and leased electric vehicles will end in less than two months, on September 30. Homeowners must install solar panels, batteries, heat pumps, and any other clean energy or efficiency upgrades before the end of this year to qualify for tax credits.
Many states offer additional incentives for these technologies, and some are re-tooling their programs to stretch the funding. Connecticut saw a rush of demand for its electric vehicle rebate program, CHEAPR, after the OBBB passed. Officials decided to slash the subsidy from $1,500 to $500 as of August 1, and will re-assess the program in the fall. “The budget that we have for the CHEAPR program is finite,” Dykes said during the July webinar. “We are trying to be good stewards of those dollars in light of the extraordinary demand for EVs, so that after October 1 we have the best chance to be able to provide an enhanced rebate, to lessen the significant drop in the total level of incentives that are available for electric vehicles.”
As far as trying to address the longer-term challenges for renewables, Balik highlighted Pennsylvania Governor Josh Shapiro’s proposal to streamline energy siting decisions by passing them through a new state board. “One of the big things states can do is siting reform because local opposition and lawsuits that drag forever are a big drag on costs,” Balik told me.
A bill that would create a Reliable Energy Siting and Electric Transition Board, or RESET Board, is currently in the Pennsylvania legislature. (New York State took similar steps to establish a renewable siting office to speed up deployment in 2020, though so far it’s still taking an average of three years to permit projects, down from four to five years prior to the office’s establishment.) Connecticut officials also discussed looking at ways to reduce the “soft costs” of permitting and environmental reviews during the July webinar.
Balik added that state green banks can also play a role in helping projects secure more favorable financing. Their capacity to do so will be significantly higher if the courts force the federal government to administer the Greenhouse Gas Reduction Fund.
When it comes to speeding up renewable energy deployment, there’s at least one big obstacle that governors have little control over. Wind and solar projects need approval from regional transmission operators, the independent bodies that oversee the transmission and distribution of power, to connect to the grid — a notoriously slow process. The lag is especially long in the PJM Interconnection, which governs the grid for 13 mid-Atlantic States, and has generally favored natural gas over renewables. But governors are starting to turn up the pressure on PJM to do better. In mid July, Shapiro and nine other governors demanded PJM give states more of a say in the process by allowing them to propose candidates for two of PJM’s board seats.
“Can we use this moment of crisis to really impress the urgency of getting some of these other things done — like siting reforms, like interconnection queue fixes, that are all part of the economics of projects,” Balik asked. These steps may help, but lengthy federal permitting processes remain a hurdle. While permitting reform is a major bipartisan priority in Congress, as my colleague Matthew Zeitlin wrote recently, a deal that’s good for renewables might require an about-face from the president on wind and solar.
The Danish government is stepping in after U.S. policy shifts left the company’s New York offshore wind project in need of fresh funds.
Orsted is going to investors — including the Danish government — for money it can’t get for its wind projects, especially in the troubled U.S. offshore wind market.
The Danish developer, which is majority owned by the Danish government, told investors on Monday that it would seek to raise over $9 billion, about half its valuation before the announcement, by selling shares in the company.
Publicly traded companies do not typically raise money by selling stock, which is more expensive for the company, tending instead to finance specific projects or borrow money.
But the offshore wind business is not any industry.
In normal times, Orsted and other wind developers will conduct “farm-downs,” selling stakes in projects in order to help finance the next ones. Due to “recent material adverse development in the U.S. offshore wind market,” however, the early-morning announcement said, “it is not possible for the company to complete the planned partial divestment and associated non-recourse project financing of its Sunrise Wind offshore wind project on the terms which would provide the required strengthening of Orsted’s capital structure” — a long way of explaining that it can’t find a buyer at an acceptable price. Hence the new equity.
While the market had been expecting Orsted to raise capital in some form, the scale of the raise is about twice what was anticipated, according to Bloomberg’s Javier Blas.
About two-thirds of the stock sale will be used to continue financing Sunrise Wind, a 924-megawatt planned offshore wind project off the coast of Long Island, according to Morgan Stanley analysts. Construction began last summer, just days after Orsted took full ownership of the project by buying out a stake held by the utility Eversource.
Despite all the sound and fury around offshore wind in the United States, the company said in its earnings report, also released Monday, that “we successfully installed the first foundations at Sunrise Wind, following completion of the wind turbine foundation installation at Revolution Wind,” a 704-megawatt project off the coasts of Rhode Island and Connecticut. “Construction of our offshore U.S. assets is progressing as expected and according to plan,” the company said.
But the report also said Orsted took a hit of over a billion Danish kroner in the first half of this year due to tariffs and what it gingerly refers to as “other regulatory changes, particularly affecting the U.S.,” a.k.a. President Donald Trump.
The president and his appointees have been on a regulatory and financial campaign against the wind sector, especially offshore wind, attempting to halt work on another in-construction New York project, Empire Wind, before Governor Kathy Hochul was able to reach a deal to continue. All future lease sales for new offshore wind areas have been canceled.
Even before Trump came back into office, the offshore wind industry in the U.S. had been hammered by high interest rates, which raised the cost of borrowed money necessary to fund projects, and spiraling supply chain costs and project delays, which also increased the need for the more expensive financing.
“Because of the sharp rise in construction costs and interest rates since 2021, all the projects turned out to be value-destructive,” Morningstar analyst Tancrede Fulop wrote in a note about the Orsted share issue. The company took large losses on scuttled projects in the U.S. and already cancelled its dividend and announced a plan to partially divest many other projects in order to shore up its balance sheet and fund future projects.
While the start-and-stop Empire Wind project belongs to Equinor, Orsted’s Scandinavian neighbor (majority-owned by the Norwegian government), Orsted management told analysts on its conference call that “the issues surrounding Empire Wind's stop-work order from April 2025 had negatively impacted financing conditions for Sunrise,” according to Jefferies analyst Ahmed Furman.
Equinor, too, has had to take a bigger share of Empire Wind, buying out the stake held by BP in January of this year. BP had bought 50% stakes in three Equinor wind projects in 2020, but last year wrote down its investment in the offshore wind sector in the U.S. by over $1 billion.
Why could Orsted not simply pull out of Sunrise Wind? “Orsted and our industry are in an extraordinary situation with the adverse market development in the U.S. on top of the past years’ macroeconomic and supply chain challenges,” Rasmus Errboe, who took over as the company’s chief executive earlier this year, said in a statement. “To deliver on our business plan and commitments in this environment, we’ve concluded that a rights issue is the best solution for Orsted and our shareholders.”
The Danish government will maintain its 50.1% stake in the company, putting the small Scandinavian country with its low-boiling trade and territorial conflicts against the Trump administration in direct capitalist conflict with the American president and his least favorite form of electricity generation.
In the immediate wake of the announcement, Jefferies analyst Ahmed Farman wrote to clients that the deal would “obviously de-risk the [balance sheet], but near-term dilution risk seems substantial,” citing the unexpected magnitude of the raise and no sign pointing to new growth. “As a result, we expect the initial stock reaction to be quite negative.”
And so it has been: The stock closed down almost 30%, its biggest-ever single-day drop and below the price at which it went public in 2016, according to Bloomberg data.