Orsted Halts Work on Giant UK Wind Farm Citing Rising Costs
The world's largest offshore wind developer is discontinuing work on a giant UK project in its current form due to rising costs and the risk of delays.
Orsted
The news is a blow to UK Secretary of State for Energy and Climate Change Ed Miliband, who is pursuing a goal to decarbonize the whole economy, which will need to increase offshore wind capacity from
While the UK's Climate Change Act 2008 embeds legally binding carbon targets into law and creates favourable conditions for the wind industry, Orsted still faces challenges.
'The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation,' Orsted CEO Rasmus Errboe said in a statement.
He also said the company will 'seek to develop the project later in a way that is more value-creating for us and our shareholders.'
Related Stories
2/6/2025
3/16/2025
The site was being
In February, the Danish company said it was
Orsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants.
It operates 12 offshore wind farms in the UK, including Hornsea 1, which held the title of the world's largest wind farm until its sister project, Hornsea 2, came into operation with 165 turbines in August 2022.
The Department for Energy Security and Net Zero (DESNZ)
The department said it was exploring changing rules for the next big AR7 auction for subsidized wind power sites so that projects can get their contracts confirmed sooner.
AR7 is the acronym for Allocation Round 7, the UK's Contracts for Difference (CfD) scheme, which is the government's
Last year's Allocation Round 6 (AR6) budget exceeded
A spokeswoman for DESNZ told The Epoch Times via email: 'We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Ørsted to get Hornsea 4 back on track.
'We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets.'
Responding to Orsted's announcement, Dhara Vyas, CEO of Energy UK, the trade association for the energy industry, said in a May 7
A source familiar with the matter told The Epoch Times that the government is working to get Hornsea 4 back on track and for the project to happen by 2030.
Despite record public and private investment, strong government support, and locked-in climate laws, analysts
'Buyer's Remorse'
Gordon Hughes, a former professor of economics at the University of Edinburgh and former senior adviser on energy and environmental policy at the World Bank, previously told The Epoch Times via email that 'it is all a massive case of buyer's remorse because of excessive optimism about future costs five years ago.'
In the past two years, industry giants such as Orsted, Siemens Energy, and Vestas have been forced to reassess their investment strategies as financial setbacks pile up.
Shifting investor sentiment and U.S. President Donald Trump's renewed push for oil and gas have also added to the wind industry's challenges. The president suspended offshore wind leases on his first day in office.
Trump's action is a shift from the previous administration's four-year effort to expand wind-power leasing, which aimed to build 30 GW of offshore wind power by 2030 and another 15 GW of floating offshore wind power by 2035.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
Will Miliband deliver higher energy prices but still not hit net zero?
Ed Miliband is at odds with the Chancellor over how much money his department will receive in the rest of this parliament. Rachel Reeves is finalising her spending plans for the next four years, to be announced next week, and has told her colleagues that they will not all get what they want. Indeed, apart from protected budgets like the NHS and an increase in defence spending, paid for out of the overseas aid budget, all Whitehall ministries face a hit if the Chancellor is to avoid putting up taxes. But Mr Miliband is in a quandary because he has pledged to decarbonise the electricity grid by 2030. His difficulty is that this timetable lacks any credibility. A report from the House of Lords industry committee says it will require 'building more energy generation and network infrastructure at a faster pace than Great Britain has managed in recent years'. The committee suggests Mr Miliband could make his sums work through so-called 'zonal pricing'. Peers say this would enable better use of existing capacity and reduce the amount of grid – ie pylons and other connectors – thereby circumventing planning battles in the countryside. This would involve splitting the single energy market into regions with the price determined by supply and demand within each area. It would mean increasing bills in London, the South East and the Midlands, where renewables are in short supply, while they would fall in Scotland because of its plentiful wind farms. The likelihood, therefore, is that Mr Miliband will miss his targets while putting up the electricity bills of millions. That should go down well at the next election Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
4 hours ago
- Yahoo
Meat major Plukon buys vegan business Vega Insiders
Netherlands-based poultry major Plukon Food Group has acquired local vegan and vegetarian products business Vega Insiders. The companies did not disclose the financial terms of the deal. In a statement announcing the transaction Plukon Food Group CEO Kees Kraijenoord said: 'This acquisition fits perfectly within our strategy. Plukon has been working on alternative protein concepts for years. 'Plukon Food Group has long wanted to have a dedicated vega(n) production location. With this acquisition, that ambition becomes reality and we can actually scale up within a fully plant-based environment." Part of the Zilverwerf Group, Vega Insiders specialises in fresh and frozen products such as vegan minced meat, bacon and cheese bites. The products are sold to retail and foodservice customers. The company operates from a 'modern' factory in Udenhout, employing 18 people. Vega Insiders founder and Zilverwerf Groep owner Mart Beniers said: 'After years of building Vega Insiders, I was looking for a future-proof place for the company. 'In Plukon, I found a partner with the same mentality: enterprising, realistic and with knowledge of the market. There was an immediate click, and that gives me the confidence that Vega Insiders is in good hands.' Vega Insiders will continue to operate under its own name within the Plukon Food Group. All the employees of the company will be retained by the group to integrate their 'knowledge and expertise in the field of vega(n) product development', Plukon Food Group said. A major supplier of meat products, Plukon Food Group operates across 40 locations in seven countries across Europe. In 2024, the company reported a turnover of €3.4bn ($3.87bn) and employed 11,000 staff. In January, Plukon Food Group acquired Spanish family-owned poultry business Grupo Avícola Hidalgo. The business made a series of acquisitions in 2024, including a move for HKScan's Danish unit and Polish peer Algas. "Meat major Plukon buys vegan business Vega Insiders" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Yahoo
Brentford set transfer priorities amid interest in Mbeumo and Wissa
Brentford Transfers: Summer Shake-Up on the Horizon Mbeumo and Wissa under the spotlight Brentford's summer transfer window looks poised to test the club's resolve and recruitment strategy. With top-six sides circling, the futures of star forwards Bryan Mbeumo and Yoane Wissa remain delicately poised. Together they delivered 39 Premier League goals last season, providing the bite that kept Brentford competitive across the campaign. Advertisement Manchester United are preparing to open talks over Mbeumo. A reported £60 million could tempt Brentford's hierarchy to negotiate. Wissa, too, is attracting serious attention. Tottenham made overtures in January and Nottingham Forest saw a £22 million bid rejected. While no fresh offers have yet landed, interest is expected to escalate as the window progresses. Their potential departures leave a considerable void. Thomas Frank and his recruitment team know that replacing either player—let alone both—would be far from straightforward. Forward planning already underway Brentford's response has been proactive. The club has already confirmed a deal for Liverpool's Caoimhin Kelleher, bringing the Republic of Ireland international in for £18 million including add-ons. Mark Flekken's move to Bayer Leverkusen for £11 million created the opening, and Brentford wasted no time filling it. Photo: IMAGO They also moved for 18-year-old talent Romelle Donovan from Birmingham City, a £3 million deal which could rise with performance-related bonuses. Donovan impressed while on loan and joins with a long-term view to development, but his arrival won't impact the more immediate need for frontline reinforcements. Advertisement The priority now? A goalscoring winger, preferably right-sided. Despite Kevin Schade's growth over the past 18 months, the Bees have leaned too heavily on Mbeumo and Wissa. That over-reliance has been acknowledged internally. Nigeria international Christantus Uche, currently at Getafe, has been linked. While a deal isn't close, he fits the club's profile: versatile, quick and with resale potential. Midfield and centre-back options being reviewed Brentford also aim to strengthen in midfield, specifically targeting a box-to-box No8 and a more defensively-minded option. That comes even after securing promising Ukrainian Yehor Yarmoliuk to a long-term deal. Advertisement At the back, the Bees are unlikely to invest heavily at full-back. Michael Kayode's loan from Fiorentina has been made permanent for £14.8 million, shoring up the wide defensive positions. The focus now is on spotting undervalued centre-backs—a Brentford speciality in past windows. Uncertainty at managerial level Perhaps most intriguingly, manager Thomas Frank could yet become part of the summer movement. Spurs are reportedly monitoring the Danish coach as they weigh their next step. While no formal approach has been made, it adds another layer of unpredictability to Brentford's off-season. Sales are expected beyond Mbeumo and Wissa. Mads Roerslev and Frank Onyeka are available at the right price, with offers anticipated once bigger moves begin to shape the market. Brentford's transfer window is rarely dull. This one, though, could be season-defining.
