Danish firm shelves huge UK windfarm project over rising costs
The fourth phase of the huge Hornsea windfarm development, located off the Yorkshire coast, was expected to include 180 giant turbines, capable of generating the equivalent of enough green electricity to power 1m homes.
However, Ørsted's chief executive, Rasmus Errboe, said in a statement to investors it was discontinuing the development: 'The combination of increased supply chain costs, higher interest rates, and increased execution risk have deteriorated the expected value creation of the project.'
As a result, the company expects to incur breakaway costs of between 3.5bn and 4.5bn Danish kroner (£399m-£513m).
The final investment decision for the project was due later this year.
The cancellation marks the latest financial hit for Ørsted, after soaring costs forced it to scrap two major windfarm developments off the north-east coast of the US in late 2023, at a cost of £3bn, cutting hundreds of jobs.
The company, which is majority owned by the Danish government, has previously reined in other plans to expand its offshore wind business amid rising costs facing the global wind power industry.
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.
Ørsted said on Wednesday that the wind industry remained 'challenged in the short-term with headwinds relating to supply chain, regulatory, and macroeconomic developments'.
Since taking office in January, the US president, Donald Trump, has expressed strong opposition to offshore wind.
However, Ørsted said the long-term outlook for offshore was 'strong due to the increasing global electricity demand, a strengthened focus on energy security and affordability through renewables, and improved framework conditions in several major markets'.
The Hornsea 4 project received the green light from the last government in July 2023. With a capacity of 2.6GW, it was the second-largest windfarm to receive government approval, after the Hornsea 3 project, which has a 2.8GW capacity and is expected to be completed in 2027. skip past newsletter promotion
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The first two phases of the Hornsea development are already operational.
Ørsted's latest project cancellation comes after a turbulent time for the company, which resulted in it implementing a restructuring plan in 2024, while it cancelled dividend payouts to shareholders for the 2023-25 financial years in an attempt to bolster its finances. Its market value has plunged by about 80% since its peak in 2021.
The Hornsea 4 cancellation came as the company reported a first-quarter operating profit that was above expectations.
At the time of its construction, Hornsea 2 was the world's highest-capacity offshore windfarm. It generates enough energy to power more than 1.4m homes, and covers an area of 178 square miles.
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CNN's resident MAGA defender keeps getting his past Jan. 6 condemnation thrown back in his face
In January 2021, CNN senior political commentator Scott Jennings was unwavering in his criticism of Donald Trump following the Capitol riots, saying that the president 'caused this insurrection with his lies and conspiracy theories' and 'every Republican must condemn it.' Now that Jennings is the network's resident MAGA defender and Trump has federally taken over Washington while deploying the National Guard into the city because of a so-called 'crime emergency,' the longtime GOP strategist is now getting his past anti-Trump criticism of January 6 thrown back in his face. And, quite frankly, he is not thrilled about it. Hours after the president held his Monday press conference announcing that he was seizing control of the D.C. police department and mobilizing the military to patrol the city's streets to 'rescue' the nation's capital from 'crime, bloodshed, bedlam and squalor and worse,' Jennings appeared on CNN NewsNight to discuss Trump's widely criticized move. Spurred into action by images of former DOGE staffer Edward 'Big Balls' Coristine bloodied following an attempted carjacking and Fox News reports about crime in D.C., Trump has called his move 'Liberation Day in D.C.' while giving the green light to law enforcement to 'do whatever the hell they want.' Critics, meanwhile, have noted that despite the president's rhetoric about 'out-of-control' crime, violent crime has rapidly declined in the city over the past two years and is at a 30-year low. During the Monday night CNN panel discussion, Jennings was unsurprisingly applauding the president's decision as being tough on crime while showing support for law enforcement, prompting fellow panelist Tara Setmayer to take issue with the idea that Trump 'backs the blue' by referencing Jennings' prior condemnation of January 6. 'You look at what Donald Trump did and what MAGA has done to the police officers who defended our Capitol on January 6th,' Setmayer, a former GOP strategist and Never-Trump conservative, declared. 'You want to talk about spitting in the face? Donald Trump spit in the face of every single one of those officers who took that oath to protect and serve on January 6th when he pardoned those insurrectionist bastards and who wanted to take down our Capitol and stop the free and fair, peaceful transfer of power.' One of the president's first acts after his second inauguration was to issue a blanket pardon to roughly 1,600 rioters who were charged with crimes during the attack on the Capitol, including many who were jailed for violently attacking police officers. 'And so how dare people sit here and say that he backs the blue? He abdicated that, because you know what? He did not protect or defend the Constitution and he violated his oath of office,' she continued. 'You know, who said that? You did after January 6th. And that's exactly what he continues to do right now with the way he is throwing around our military, our police, talking about moving us to other states. This is something people should be very concerned about.' Indeed, shortly after a MAGA mob stormed the Capitol on January 6 in an effort to stop the certification of Joe Biden's electoral victory, Jennings wrote a scathing opinion piece for CNN chastising the president and any Republican who didn't rebuke Trump's actions. 'I'm ashamed and embarrassed for our country, and for any Republican who fails to condemn this shameful behavior,' Jennings stated at the time. In an on-air appearance the night of the riot, Jennings also suggested that Trump had become such a threat to the country that he may need to abdicate his office immediately. 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Two days later, another longtime political strategist would once again confront Jennings on his harsh criticism of the president's behavior on January 6 as it related to Trump now invoking the D.C. Home Rule Act. This time around, however, Jennings didn't sit in silence and instead lashed out with personal attacks. 'I think in Washington, D.C., you're gonna have to have substantial reductions in violence, substantial reductions in murder, substantial reductions in carjackings, and people are generally gonna feel like they can walk around and not be under threat all the time,' he said, boasting about the number of arrests that have occurred since the takeover. Julie Roginsky, a Democratic operative and former Fox News pundit, snarked that she was 'old enough' to remember when Jennings was 'appalled as the rest of us were on January 6th,' leading the former Mitch McConnell adviser to cut her off. 'Because January 6th happened, should we not enforce the law today?' Jennings sneered, resulting in a heated back-and-forth in which the GOP commentator accused Roginsky of engaging in a 'silly argument.' At one point, Phillip jumped in to ask Jennings to allow Roginsky to finish her point, only for the conservative pundit to grouse that he's 'not gonna allow it' if Roginsky kept taking 'potshots' at him. 'Scott, I know you're thirsty for that seat, but let me finish,' Roginsky snapped back, referencing reports that Jennings is considering a Senate run in Kentucky to replace the retiring McConnell. 'What are you thirsty for? Some kind of relevance out here? I mean, I don't even know what you do for a living,' he fumed in response. An undeterred Roginsky, though, continued on with her point following the broadside from Jennings. 'Can I just finish what I was about to say, which is that on January 6th, [Trump] could have deployed the National Guard. He chose not to. 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Reuters
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Israel's Smotrich launches settlement plan to 'bury' idea of Palestinian state
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