The cancellation of the Hornsea 4 offshore windfarm, designed to power 1 million homes, comes as rsted faces financial challenges stemming from increased supply chain costs and higher interest rates. CEO Rasmus Errboe cited a deterioration in expected value creation as the main reason for the decision, which incurs a projected loss of 3.5bn to 4.5bn Danish kroner. This cancellation follows rstedâs earlier scrapping of two US offshore developments and reflects broader industry challenges related to inflation and supply chain issues, yet maintains a hopeful long-term outlook for offshore wind despite short-term hurdles.
The combination of increased supply chain costs, higher interest rates, and increased execution risk have deteriorated the expected value creation of the project.
Developers have been facing increased costs, which were triggered by higher inflation and interest rates, combined with problems in the global offshore wind supply chain.
Collection
[
|
...
]