Danish energy company Ørsted has said it will discontinue the 2.4GW Hornsea 4 project “in its current form” due to increasing supply chain costs, higher interest rates and construction risks.
The UK government’s sixth renewable energy auction round in September 2024 saw the 2.4GW Hornsea 4 project secure one of nine contracts for difference (CfD) that were awarded.
The competitive CfD scheme is the UK government’s main mechanism for securing clean energy infrastructure for Britain. The scheme supports renewable energy developers by protecting them from fluctuations in the wholesale electricity market.
Hornsea 4 is the fourth phase of Ørsted’s huge Hornsea offshore wind farm in the North Sea, off the coast of East Yorkshire. Hornsea 1 and 2 are already operational with 3 and 4 in development.
Hornsea 4 would include the installation of 180 giant turbines that would have the capacity to power the equivalent of 1 million homes.
However, in a statement yesterday Ørsted announced it is pulling...