Ørsted's cancellation of the Hornsea 4 offshore wind project has dealt a significant blow to the UK’s green energy ambitions. With a capacity of 2.4GW, the project was anticipated to provide power for 1 million homes. Ørsted cited rising supply chain costs and financial risks as key reasons for pulling out, despite having previously secured a government contract. The decision reflects broader challenges in the offshore wind sector, including inflation and interest rate hikes, making the UK’s target to boost offshore capacity by 2030 increasingly complex.
Hornsea 4 becomes the latest in a string of major offshore wind setbacks, underscoring the mounting challenges faced by the offshore wind sector.
Rasmus Errboe, Ørsted's CEO, stated, "The combination of increased supply chain costs, higher interest rates and increased execution risk means this project is unlikely to deliver value for us."
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