The Danish renewable project developer Ørsted has decided to discontinue its 2.4 GW Hornsea 4 offshore wind project in the United Kingdom in its current form. According to Ørsted, since the Contract for Difference (CfD) award in allocation round 6 (AR6) in September 2024, the project has seen several adverse developments relating to continued increase of supply chain costs, higher interest rates, and an increase in the risk to construct and operate the wind project on the planned timeline.
Ørsted has thus taken the decision to stop further spend on the project at this time and terminate the project’s supply chain contracts, meaning that it will not deliver Hornsea 4 under the CfD awarded in AR6. The company will now evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid connection agreement and Development Consent Order.
As a consequence of the decision, Ørsted expects to incur break-away costs of DKK3.5bn to DKK4.5bn (€469m to €603m) in 2025. In February 2025, the geotechnical survey works had started at the Hornsea 4 site, located about 69 km off the Yorkshire coast (England).
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