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The world’s largest offshore wind developer, Ørsted, has halted Hornsea 4 the fourth phase of the massive Hornsea project off the Yorkshire coast because escalating global supply-chain costs, rising interest rates and greater execution risk mean the scheme “no longer makes economic sense”, the Danish company announced on Wednesday.
Had it proceeded, Hornsea 4 would have deployed 180 giant turbines to generate 2.4 GW of power enough for the equivalent of 1 million UK homes. Its cancellation is a significant setback for the government’s target of quadrupling Britain’s offshore wind capacity by 2030 to achieve a largely fossil-fuel-free electricity system.
Ørsted CEO Rasmus Errboe explained that “the combination of increased supply-chain costs, higher interest rates and increased execution risk” prevented the project from delivering satisfactory value. Similar cost pressures forced Ørsted last year to scrap two U.S. offshore wind projects and delay a third by a year. In 2023, Vattenfall abandoned its £4 billion Norfolk Boreas scheme for comparable reasons.
Industry bodies warned that Hornsea 4’s cancellation raises the stakes for the upcoming round of renewable energy contract auctions in the summer. Energy UK CEO Dhara Vyas urged the government to ensure the auction’s success, while RenewableUK deputy CEO Jane Cooper called for auction terms that reflect current industry costs and for scrapping plans for “zonal pricing” due to its potential to further inflate investment expenses.
A government spokesperson said it remains committed to delivering a “strong pipeline” of clean-power projects by 2030 and will work with Ørsted to revive Hornsea 4. They reiterated that the broader mission is to build an energy system that lowers bills, bolsters security and supports Britain’s transition to net zero.
