In a decisive legal step, Sunrise Wind LLC, a subsidiary of Ørsted, filed a lawsuit in the U.S. District Court for the District of Columbia to challenge the lease suspension order issued by the Bureau of Ocean Energy Management (BOEM) on December 22, 2025.
The legal action will be followed by a motion for injunctive relief seeking to reinstate the contractual rights of the Sunrise Wind project, currently in an advanced stage of construction. The company argues that the suspension violates existing law and jeopardizes the future of one of the most ambitious offshore wind energy initiatives on the U.S. East Coast.
A strategic project at risk
Sunrise Wind LLC denounced that, after years of local, state and federal reviews and permitting, the suspension puts a multi-billion dollar investment at risk. To date, the project has completed 45% of its construction, with 44 out of 84 foundations of monopile foundations already in place, in addition to the marine converter station and onshore electrical infrastructure nearing completion.
The wind farm was scheduled to begin generating power in October 2026 and, once operational in 2027, would supply electricity to 600,000 homes under a 25-year contract with the State of New York.
Legal basis and prior agreements
As part of the regulatory process, Sunrise Wind consulted extensively with the U.S. Department of Defense, resulting in a formal agreement that established mitigation measures to ensure that the project would not interfere with military operations or national security. It also received approvals from key agencies such as the Coast Guard, Army Corps of Engineers and National Marine Fisheries Service.
The company insists that it has complied with every step of the legal and administrative process, and therefore considers that the suspension lacks technical or legal justification. The litigation seeks to safeguard the rights of the project and avoid irreversible economic and structural damage.
Impact on the power grid and employment
The delay of the project could have direct consequences on the reliability of the regional power grid. Experts warn that without Sunrise Wind, the risks of energy instability would increase, especially at times of high demand. In addition, more than 1,000 unionized workers have already contributed more than 1 million hours of labor to the project, which is part of Ørsted’s effort to strengthen the energy supply chain in more than 40 states.
Ørsted maintains its strategy in the USA.
Despite the legal setback, Ørsted continues to reaffirm its commitment to renewable energy development in the United States. The company, recognized globally for its leadership in sustainability, is also involved in Revolution Wind LLC, a joint venture facing a similar situation, which filed a parallel lawsuit on January 1, 2026.
Sunrise Wind LLC represents a crucial part of Ørsted’s vision to modernize the power grid and accelerate the energy transition in the country, in a context where energy security and diversification of sources are increasingly prioritized.
Source: Ørsted