Ørsted has decided to discontinue the Hornsea 4 project in the UK in its current form.

A company statement reads: “Since the Contract for Difference (CfD) award in allocation round 6 (AR6) in September 2024, the 2,400MW Hornsea 4 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 Hornsea 4 on the planned timeline for a project of this scale. In combination, these developments have increased the execution risk and deteriorated the value creation of the project. Therefore, Ørsted has taken the decision to stop further spend on the project at this time and terminate the project’s supply chain contracts, meaning that Ørsted will not deliver Hornsea 4 under the CfD awarded in AR6.”

The decision is huge blow to the Government’s plans for renewable energy and energy security targets.

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