Hornsea 4 axing puts 2030 targets in doubt
Ørsted has announced that the 2.4GW Hornsea 4 offshore wind farm is being abandoned in its current form, in what is a major blow to the UK’s 2030 decarbonisation targets.
Having been awarded a Contract for Difference (CfD) in September 2024, the North Sea project has run into numerous financial hurdles, including rising supply chain costs and higher interest rates, all set against the backdrop of a looming global trade war. Ørsted claims these factors ‘increased the execution risk and deteriorated the value creation’ for Hornsea 4, casting doubts over the project’s timeline delivery and economic viability.
Ørsted president and CEO Rasmus Errboe said the company remains “fully committed” to UK offshore wind, but that the numbers for this particular project simply weren’t stacking up. The Danish firm is expected to incur breakaway costs of around £500m as a result of the project’s hiatus.
“Our capital allocation is based on a strict and value-focused approach, and after careful consideration, we’ve decided to discontinue the development of the Hornsea 4 project in its current form, well ahead of the planned Final Investment Decision later this year,” said Errboe.
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