Ørsted pulls plug on major UK wind farm
Citing rising costs and execution risks, Ørsted cancels Hornsea 4 project, casting doubt on UK’s clean energy goals amid industry-wide challenges.
Image for illustrative purposes
Denmark / UK: Danish energy giant Ørsted announced the cancellation of its Hornsea 4 offshore wind project in the UK, a major blow to Britain’s clean energy ambitions. The decision reflects growing financial pressure across the renewable sector, including inflation, higher borrowing costs, and logistical challenges.
Ørsted has seen its valuation plunge nearly 80 % from its 2021 high. The termination of Hornsea 4, one of the largest offshore wind farms globally, will cost the company up to $838 M (DKK5.5 B) due to contract penalties and asset write-downs.
CEO Rasmus Errboe, who took the helm in January, emphasised the need for more selective project development. “Increased costs, interest rates, and construction uncertainties have severely impacted the project’s expected return,” he said.
Despite the setback, the British government remains optimistic. Energy Secretary Ed Miliband expressed hope that Hornsea 4 could be revived before 2030, supporting the UK’s goal to install 50 GW of renewable capacity by that year.
Ørsted’s shares rose 0.7 % after the announcement, although still down a third since Trump’s re-election in 2024, which dampened investor sentiment in green energy.
The Hornsea 4 project, off England’s Yorkshire coast, had previously secured a 2.4 GW contract. Ørsted maintains its full-year outlook excluding one-time charges but warned that US tariffs and global headwinds continue to challenge offshore wind expansion.
Source: Reuters
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