ORSTED HALTS HORNSEA 4 WIND FARM: MAJOR SETBACK FOR UK'S GREEN ENERGY AMBITIONS!
Danish energy giant Orsted has announced the suspension of it’s Hornsea 4 offshore wind farm project in the UK, citing escalating costs, supply chain disruptions, and increased market risks. The 2.4GW project, intended to power over a million homes, is no longer financially viable under current conditions.
Hornsea 4 had secured a UK government contract guaranteeing a fixed electricity price, but Orsted’s CEO, Rasmus Errboe, stated that adverse market conditions have eroded the project’s value creation. The suspension will cost Orsted between £399-£513 million in break fees.
The development of Hornsea 4 also faced delays due to planning system inefficiencies and conflicts over seabed usage with BP’s carbon capture project.
The offshore wind sector has been fighting with rising costs and supply chain challenges. Orsted’s market value has declined around 80% since its peak in 2021, reflecting broader industry challenges.
The decision to cancel the project is a significant setback for the UK’s clean energy goals, which aim to triple offshore wind capacity by 2030. The UK government has expressed commitment to clean energy and plans to collaborate with Orsted to potentially restart Hornsea 4.
Despite the suspension, Orsted retains the development rights for Hornsea 4 and we hope may revive the project under more favourable conditions.
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