Danish energy giant Orsted has announced it will discontinue the Hornsea 4 offshore wind project in its current form, citing escalating supply chain costs, rising interest rates, and increased execution risks that have undermined the project’s viability. 1c5z1k

The 2.4 GW project, awarded a Contract for Difference (CfD) in the UK’s Allocation Round 6 in September 2024, has since faced multiple adverse developments. According to the company, these factors have significantly increased the risk of delivering the project on schedule and compromised its overall value creation.

As a result, Orsted has decided to cease further investment in Hornsea 4 and will terminate its supply chain contracts. This means the company will not proceed with the project under the of the awarded CfD.

Despite the decision, Orsted confirmed it retains key project rights—including seabed leases, a grid connection agreement, and a Development Consent Order—and will consider future options for the site.

”We remain fully committed to being an important partner to the UK government to help them achieve their ambitious target for offshore wind build-out and appreciate the work they’ve done to deliver a clear framework to offshore wind. However, 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,” Rasmus Errboe, Group President and CEO of Ørsted, said.