Overview

• Ørsted has decided to discontinue the Hornsea 4 offshore wind project, citing higher supply chain costs, increased interest rates, and execution risks.
• The company will incur break-away costs of 3.5–4.5 billion Danish kroner (£399m–£513m) but retains seabed rights and may revisit the project under improved conditions.
• Hornsea 4, originally awarded a government contract in 2024, was a key component of the UK’s 2030 clean energy goals, now facing a setback.
• The UK government has pledged to collaborate with Ørsted and emphasized a robust pipeline of renewable projects to meet clean power targets.
• The decision highlights broader challenges in the offshore wind industry, including macroeconomic pressures and evolving project viability concerns.