Ørsted Halts Hornsea 4 Offshore Wind Project in the UK Due to Rising Costs and Increased Risks

Ørsted Halts Hornsea 4 Offshore Wind Project in the UK Due to Rising Costs and Increased Risks

(IN BRIEF) Ørsted has decided to discontinue the Hornsea 4 offshore wind project due to increased costs, higher interest rates, and elevated risks, making the project’s current execution untenable. The company plans to explore alternative options for the project while maintaining its commitment to the UK’s offshore wind objectives. Ørsted expects to incur significant breakaway costs in 2025 but has reaffirmed its guidance for the year.

(PRESS RELEASE) FREDERICIA, 7-May-2025 — /EuropaWire/ — Ørsted has decided to discontinue the Hornsea 4 offshore wind project in the UK, citing multiple adverse developments that have escalated the project’s execution risks. The 2,400 MW project, which was awarded a Contract for Difference (CfD) in September 2024, has been heavily impacted by rising supply chain costs, higher interest rates, and growing challenges to meet the project’s planned timeline.

These factors have diminished the anticipated value creation of Hornsea 4, prompting Ørsted to halt further spending and terminate the project’s supply chain contracts. As a result, Ørsted will not deliver Hornsea 4 under the previously awarded CfD.

While Ørsted remains committed to the UK government’s offshore wind expansion goals, the company will evaluate alternative options for the future development of Hornsea 4, utilizing its seabed rights, grid connection agreements, and Development Consent Order.

Rasmus Errboe, Ørsted’s Group President and CEO, emphasized the company’s dedication to offshore wind in the UK. “Despite this decision, we continue to firmly believe in the potential of offshore wind in the UK and its long-term value. We’ll retain the Hornsea 4 project rights and aim to revisit its development when the conditions are more favorable for creating value for Ørsted and our shareholders.”

The decision to halt the project is expected to result in breakaway costs of DKK 3.5 to 4.5 billion in 2025, with an EBITDA impact of DKK 3.0 to 3.5 billion. Ørsted also anticipates writing down approximately DKK 0.5 to 1.0 billion in capitalized construction costs. Despite this, Ørsted’s previously guided EBITDA for 2025 remains unchanged at DKK 25-28 billion, with gross investments for the year staying at DKK 50-54 billion.

About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,300 people. Ørsted’s shares are listed on Nasdaq Copenhagen (Orsted). In 2024, the group’s revenue was DKK 71.0 billion (EUR 9.5 billion). Visit orsted.com or follow us.

Media Contact:

Global Media Relations
Tom Christiansen
+45 99 55 60 17
tomlc@orsted.com

Investor Relations
Rasmus Keglberg Hærvig
+45 99 55 90 95
ir@orsted.com

SOURCE: Ørsted