Orsted posed lower-than-expected gross sales within the first quarter.
Danish renewables agency Orsted mentioned Wednesday it was shelving plans to construct a large wind farm off the UK coast on account of rising prices, dealing a setback to Britain’s clear vitality targets.
The two,400-megawatt Hornsea 4 mission would have complemented two current Orsted wind farms and a 3rd below building.
However Orsted mentioned in a press release that the mission “has seen several adverse developments,” together with rising provide chain prices, increased rates of interest and an elevated threat in constructing it on the deliberate timeline.
“We’ve decided to discontinue the development of the Hornsea 4 project in its current form,” Orsted chief govt Rasmus Errboe mentioned.
“The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation,” he added.
The present Hornsea 1 and a pair of wind farms and the Hornsea 3 mission could have a mixed capability exceeding 5 gigawatts.
Orsted mentioned shelving the Hornsea 4 mission would price the corporate between 3.5 billion and 4.5 billion kroner ($533 million and $685 million).
“I’d like to emphasize that Orsted continues to firmly believe in the long-term fundamentals of and value perspectives for offshore wind in the UK,” Errboe mentioned.
“We’ll keep the project rights for the Hornsea 4 project in our development portfolio, and we’ll seek to develop the project later in a way that is more value-creating for us and our shareholders.”
The British authorities mentioned it could work with Orsted to revive the mission.
“We recognize the effect that globally high inflation and supply chain constraints are having on industry across Europe,” mentioned a spokesperson for Britain’s Division for Power Safety and Internet Zero.
“We will work with Orsted to get Hornsea 4 back on track,” the spokesperson mentioned.
Orsted was already dealt a $4 billion blow in 2023 when it canceled wind farm initiatives in america, a vital marketplace for the group.
Now your complete sector faces a significant problem in america after President Donald Trump froze federal allowing and loans for all offshore and onshore wind initiatives.
Orsted additionally reported first-quarter outcomes on Wednesday exhibiting gross sales rose 8% to twenty.7 billion kroner, decrease than the 21.7 billion kroner forecast by analysts surveyed by monetary information agency FactSet.
Its net profitnonetheless, practically doubled to 4.8 billion kroner.
© 2025 AFP
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Danish agency Orsted halts big UK offshore wind farm mission (2025, Might 7)
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