*

Equinor ( EQNR ) supports Orsted's rights issue

*

Will subscribe for shares worth up to $941 million

*

Says it sees value in strategic collaboration with Orsted

*

Will nominate candidate to Orsted's board

*

Orsted shares rise 4.7%

(Adds share reaction in paragraph 3, analyst comments in

paragraph 8)

By Stine Jacobsen and Nora Buli

COPENHAGEN/OSLO, Sept 1 (Reuters) - Norway's Equinor ( EQNR )

will pump nearly $1 billion into Orsted's

emergency fundraising, it said on Monday, bolstering the Danish

offshore wind power developer's efforts to cope with U.S.

President Donald Trump's hostility to the sector.

The energy company said it planned to participate in Orsted's

60-billion Danish crown ($9.4 billion) rights issue by

subscribing for new shares worth up to 6 billion crowns. It will

maintain its 10% stake in the company, it added, helping remove

some uncertainty for the offshore wind farm developer.

Shares in Orsted, which tumbled to record lows after the

company's surprise announcement in August of the capital raise

and are down 85% since their 2021 peak, rose as much as 4.7% on

the Equinor ( EQNR ) news.

Separately, Norway's sovereign wealth fund, which holds around

3% of shares in Orsted, said it would vote in favour of the

capital raise at an extraordinary meeting of shareholders on

September 5.

Equinor ( EQNR ), which is 67%-owned by the Norwegian state, is the

second-biggest shareholder in Orsted. The Danish state, which

holds just over 50% of Orsted, has already confirmed its

commitment to participate.

"In response to the challenges facing offshore wind, the

industry will see consolidation and new business models,"

Equinor ( EQNR ) said in a statement, adding it seeks "closer industrial

and strategic collaboration" with Orsted.

The offshore wind industry, which has struggled in recent years

with soaring inflation and logistical problems that sent costs

soaring, faced a further setback when Trump suspended licensing

on his first day back in office in January. His administration

has also stymied some developments, including a temporary halt

in April to an Equinor ( EQNR ) project off New York.

Analysts said Equinor ( EQNR ) had little choice but to participate

in Orsted's capital raise as sitting out would dilute its stake.

RBC analysts described it as being "between a rock and a hard

place".

Equinor ( EQNR ), which has said the purchase of its stake in Orsted was

a long-term bet on the sector, plans to nominate a candidate to

Orsted's board ahead of its next annual general meeting.

($1 = 6.3751 Danish crowns)