China-backed Ralls are set to take legal action against the US after an order from US President Barack Obama blocked the firm from building wind farms in proximity to a US navy test site in Oregon.
The FT reports that the firm claims the act was unconstitutional and says the president violated constitutional protections on property ownership and legal process.
The company is seeking to have the order overturned, or be paid compensation for its losses, which could amount to $25m from investment made, and lost production tax credit.
No one has ever before sued the US president over this type of ruling, but Ralls argues that Mr Obama exceeded his powers when he blocked the project and without giving a detailed justification.
On Friday afternoon, Mr Obama issued an order compelling the company to sell within 90 days four wind farm sites in Oregon, and to clear all its equipment and structures off the sites within 14 days.
The statement said: “There is credible evidence that [Ralls] . . . might take action that threatens to impair the national security of the United States,” but gave no further details.
Lawyers not involved in the case said Ralls would face an uphill battle to win its case against Mr Obama, with courts generally reluctant to challenge presidential decisions relating to national security.
The four sites, acquired by Ralls earlier in the year, are inside or within five miles of airspace used by the US navy to test drones and train for electronic warfare.
Ralls argues that there are “scores” of other wind turbines already operating in the area.
For more wind power news