Ørsted halts 2.4-GW UK offshore wind project due to rising costs

LONDON, May 7, 2025 – Ørsted has discontinued the 2.4-GW Hornsea 4 offshore wind project in the UK, citing rising supply chain costs, higher interest rates and increased construction risks, the company said on Tuesday.

Since receiving a 15-year Contract for Difference in September 2024, Ørsted has faced “adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks,” group president and CEO Rasmus Errboe said.

 

“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 support offshore wind,” Errboe said. “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.”

Ørsted said it will terminate supply chain contracts and stop further spending on the project, and will retain project rights, a grid connection agreement and development consent in the event of future redevelopment.

The company expects to incur break-away costs of DKK 3.5 billion-4.5 billion in 2025 and an EBITDA impact of DKK 3 billion-3.5 billion, with an additional DKK 0.5 billion-1 billion in capitalised construction costs to be written down. Despite this, its 2025 EBITDA guidance of DKK 25 billion-28 billion and gross investment guidance of DKK 50 billion-54 billion remain unchanged.

Ørsted is a global renewable energy company headquartered in Denmark, with core operations in offshore and onshore wind, solar power, energy storage and green hydrogen. It is active in Europe, North America and Asia-Pacific and has been a major investor in UK offshore wind developments.