Wind energy lifeline: Why oil giant Equinor is backing struggling Ørsted

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An unexpected alliance in the world of energy

The global energy transition has taken an unexpected turn. Equinor, the Norwegian state-owned oil and gas giant, has announced financial support for Ørsted, the Danish company known as the world’s leading developer of offshore wind. The move comes after Ørsted faced a deep financial crisis caused by skyrocketing costs, project delays and volatile energy markets.

But why would a traditional fossil fuel giant bail out a renewable energy pioneer? The answer lies in strategy, economics, and the future of sustainable energy.



The Oersted Crisis

Oersted, once known as the symbol of Europe’s green revolution, has reported multi-billion-dollar losses for 2023-2024. Rising interest rates, inflation, and disruptions to the global supply chain have pushed costs for offshore wind projects to record highs.

Estimated project cost: $3,000-$4,000 per kilowatt of offshore wind capacity.

Impact on Oersted’s balance sheet: More than $3.5 billion in write-downs related to offshore projects in the US.

The crisis threatened not only Oersted’s survival, but also the credibility of offshore wind as a cornerstone of Europe’s climate goals.

Why Equinor intervened

Supporting Equinor is not charity. By investing in Ørsted’s projects, the company is establishing itself in the fast-growing renewable energy sector, while also strengthening its global image as a diversified “energy company” rather than just an oil producer.

Strategic benefit: access to Ørsted’s expertise in offshore wind.

Financial logic: oil revenues are redirected into renewables to hedge against future fossil fuel declines.

Political factor: both Norway and the EU want to demonstrate a strong commitment to clean energy leadership.

What this means for nature and the market

Offshore wind is far from risk-free. Building massive turbines in fragile marine ecosystems raises concerns about seabird populations, fish migration, and underwater noise pollution. Environmental groups warn that large-scale wind farms must be balanced with strict environmental safeguards.

At the same time, the long-term climate benefits are undeniable: each gigawatt of offshore wind can prevent 1.5 million tons of CO₂ emissions annually compared to coal.

From a financial perspective, Equinor’s move could stabilize prices in the renewable energy sector. Experts expect the price of electricity from offshore wind to be in the $70-$90 range per megawatt-hour by 2030, compared to today’s swings of $100-$120.

The Big Picture

The partnership highlights a paradox of the global energy transition: fossil fuel profits are funding green innovation. While critics argue that the oil giants are engaging in “greenwashing,” supporters see it as a necessary step toward a sustainable future.

It is clear that offshore wind, despite its growing challenges, remains a critical pillar in achieving net-zero emissions goals. With Equinor’s support, Ørsted may yet weather the storm, and the world could witness a new era where oil and wind power work side by side.

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