Today, wind energy stocks are are on the move on some pretty interesting news.
President Joe Biden and his administration announced plans to expand offshore wind power. Among the companies the administration is targeting for partnerships, Orsted (OTCMKTS:DNNGY) and DNNGY stock has garnered a lot of attention in recent months. That’s because the Danish company has previously signed an agreement to work with the U.S. in developing its wind energy sector. Today, Biden widened the scope of the agreement.
In addition to Orsted, other companies on the move today include NextEra Energy (NYSE:NEE), Vestas Wind Systems (OTCMKTS:VWDRY) and First Trust Global Wind Energy ETF (NYSEARCA:FAN).
Accordingly, let’s dive into what sort of tailwinds (pun intended) this sector is benefiting from today.
Wind Energy Stocks Get a Big Biden Boost
Today’s announcement highlights an initiative by the Commerce, Energy, Interior and Transportation departments to build out clean energy (specifically offshore wind farms) in a way that creates meaningful U.S. jobs.
Currently, the U.S. only has one offshore wind project in operation today. The hope is that this initiative could spur aggressive growth for wind energy stocks, particularly those on the U.S. east coast. The government has promised to speed up permit applications, provide $3 billion in prospective loans to the wind energy sector, and upgrade U.S. ports.
The aforementioned expanding scope of the deal with Orsted has prompted interest in DNNGY stock today. The Biden administration announced it will instruct the NOAA to share data with Orsted on the waters where it currently holds leases. Through a $1 million grant, the government hopes to research how to develop wind power in an environmentally friendly way.
It appears the future is a lot brighter for wind energy stocks today following this news. In general, previous administrations have had varying levels of support for investment in this sector. It appears Biden is stepping up in a big way to target wind energy. For investors in wind energy stocks, that’s a great thing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
