US Wind, the developer of a 2GW offshore wind project in Maryland, has warned that it could go bankrupt if the Trump administration revokes the construction and operations plan for the project.
In a memo filed in federal court in Maryland, the developer stated that losing the COP approval, a key permit detailing the project’s construction, operation, and environmental safeguards, would result in severe financial problems.
“If the COP is lost, surrendered, forfeited, revoked, or otherwise not maintained in full force and effect, US Wind’s investors have the right to declare US Wind to be in default on its debt and/or refuse to extend additional financing,” the company said in the memo.
The company is seeking a preliminary injunction while the court considers the US government’s request to revoke the approval.
The Trump administration asked a federal judge to cancel the approval for the offshore wind farm just over a month ago. The current administration said at the time that the former one had underestimated the threats it would pose to search and rescue operations and commercial fisheries.
US Wind is owned by funds managed by Apollo Global Management and Renexia, the renewable development arm of Italian infrastructure firm Toto Holding. The 2GW project is expected to generate enough electricity to power 718,000 homes.
