Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Ørsted shelves major UK offshore windfarm project in blow to green energy goals

by May 8, 2025
May 8, 2025
Ørsted shelves major UK offshore windfarm project in blow to green energy goals

The UK’s green energy ambitions have suffered a serious setback after Danish energy giant Ørsted cancelled plans for Hornsea 4, one of the country’s largest proposed offshore windfarms, citing soaring supply chain costs and financial risks.

Hornsea 4, expected to power 1 million homes with its 2.4GW capacity, was the fourth phase of the Hornsea windfarm project off the Yorkshire coast — one of the biggest offshore wind initiatives in the world. Ørsted said the project “no longer makes economic sense”, despite having won a government contract in 2023.

“The combination of increased supply chain costs, higher interest rates and increased execution risk means this project is unlikely to deliver value for us,” said Rasmus Errboe, Ørsted’s CEO.

Hornsea 4 becomes the latest in a string of major offshore wind setbacks. Last year, Ørsted scrapped two wind projects off the US coast, while Swedish firm Vattenfall pulled out of the Norfolk Boreas project, citing similar financial headwinds.

The cancellation underscores the mounting challenges faced by the offshore wind sector, including inflation, interest rate rises, and global supply chain disruption, all of which are pushing up the cost of development.

The UK government’s target to quadruple offshore wind capacity by 2030 — part of its plan to reduce gas-fired power to just 5% of electricity generation — now looks more difficult to achieve.

“This raises the stakes for the next Contracts for Difference auction,” said Dhara Vyas, chief executive of Energy UK. “It’s vital the government ensures it’s a success.”

Jane Cooper, deputy chief executive of RenewableUK, warned that government plans to introduce zonal pricing — which would vary electricity prices based on location — would “drive the cost of investment up even further”.

The government acknowledged Ørsted’s decision as a setback but insisted it still had a “strong pipeline of clean power projects” and pledged to work with Ørsted to potentially get Hornsea 4 back on track.

“We will deliver an energy system that brings energy bills down for good and strengthens Britain’s energy security,” a government spokesperson said.

The Hornsea 4 cancellation came on the same day that Harbour Energy, the UK’s largest North Sea oil and gas producer, announced plans to cut up to 250 jobs from its Aberdeen-based workforce. The company blamed the UK’s windfall tax on oil and gas profits, saying it had made operations financially unviable.

In the US, the offshore wind sector faces additional uncertainty after the incoming Trump administration vowed to end offshore wind development “on day one”. Norwegian energy company Equinor has already been issued a stop-work order on a major project.

Ørsted, once Europe’s most valuable renewable energy company, has seen its market value plunge by 80% since 2021. In 2024, it launched a major restructuring and cancelled dividends through to 2025 to shore up finances.

Despite near-term headwinds, the company remains optimistic about the long-term potential of offshore wind, pointing to growing global electricity demand and renewed interest in energy security.

“The long-term outlook for offshore wind remains strong,” Ørsted said.

However, for the UK, the collapse of Hornsea 4 is a stark reminder of the fragility of green investment, especially in the face of rising costs, regulatory uncertainty, and international competition for capital. With critical auctions looming this summer, the pressure is now firmly on the government to adjust its policies — or risk missing its flagship climate targets.

Read more:
Ørsted shelves major UK offshore windfarm project in blow to green energy goals

0
FacebookTwitterGoogle +Pinterest
previous post
British drivers send ‘clear signal’ in supporting electric cars as petrol and diesel sales nosedive
next post
House votes to make Trump Gulf of America name change permanent

You may also like

Dating cons and dodgy apps among most common...

May 22, 2023

Government launches £1bn scheme to insulate middle-income homes

November 28, 2022

Gary Lineker’s podcast empire achieves £1.4m profit surge

March 1, 2025

Psychology of Institutional Crypto Trading

January 22, 2024

Saudi wealth fund takes 10% stake in Heathrow...

November 29, 2023

What are the benefits of hiring a home...

January 23, 2024

Unlocking Global Opportunities: A Comprehensive Guide to E-2...

January 10, 2025

3 tips for choosing a quality excavator parts...

February 16, 2024

Thousands of UK jobs at risk as uncertainty...

December 10, 2024

Cyber experts raise AI fears security fears in...

February 27, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Affordable Housing Testimony

      May 8, 2025
    • Trump’s New Manufacturing Tax Break Could be a Bad Rerun of Failed Policy

      May 8, 2025
    • Salmon Scotland urges further talks to scrap 10% US tariff after UK-US trade deal

      May 8, 2025
    • Trump targets Iranian oil with sanctions, increasing pressure on Islamic Republic to make deal on nukes

      May 8, 2025
    • Trump signals China ‘very much’ interested in securing trade deal ahead of Switzerland negotiations

      May 8, 2025
    • Xi stands with Putin against ‘international bullying’ amid Trump trade war

      May 8, 2025

    Categories

    • Business (7,919)
    • Investing (1,940)
    • Politics (15,143)
    • Stocks (3,066)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved