Latest news with #Hornsea1
Epoch Times
07-05-2025
- Business
- Epoch Times
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.
France 24
07-05-2025
- Business
- France 24
Danish firm Orsted halts huge UK offshore wind farm project
The 2,400-megawatt Hornsea 4 project would have complemented two existing Orsted wind farms and a third under construction. But Orsted said in a statement that the project "has seen several adverse developments", including rising supply chain costs, higher interest rates and an increased risk in building it on the planned timeline. "We've decided to discontinue the development of the Hornsea 4 project in its current form," Orsted chief executive Rasmus Errboe said. "The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation," he added. The existing Hornsea 1 and 2 wind farms and the Hornsea 3 project will have a combined capacity exceeding five gigawatts. Orsted said shelving the Hornsea 4 project would cost the company between 3.5 billion and 4.5 billion kroner ($533 million and $685 million). "I'd like to emphasise that Orsted continues to firmly believe in the long-term fundamentals of and value perspectives for offshore wind in the UK," Errboe said. "We'll keep the project rights for the Hornsea 4 project in our development portfolio, and we'll seek to develop the project later in a way that is more value-creating for us and our shareholders." The British government said it would work with Orsted to revive the project. "We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe," said a spokesperson for Britain's Department for Energy Security and Net Zero. "We will work with Orsted to get Hornsea 4 back on track," the spokesperson said. Orsted was already dealt a $4 billion blow in 2023 when it cancelled wind farm projects in the United States, a crucial market for the group. Now the entire sector faces a major challenge in the United States after President Donald Trump froze federal permitting and loans for all offshore and onshore wind projects. Orsted also reported first-quarter results on Wednesday showing sales rose eight percent to 20.7 billion kroner, lower than the 21.7 billion kroner forecast by analysts surveyed by financial data firm FactSet. Its net profit, however, nearly doubled to 4.8 billion kroner.
Yahoo
07-05-2025
- Business
- Yahoo
Danish firm Orsted halts huge UK offshore wind farm project
Orsted posed lower-than-expected sales in the first quarter (Thomas Traasdahl) Danish renewables firm Orsted said Wednesday it was shelving plans to build a massive wind farm off the UK coast due to rising costs, dealing a setback to Britain's clean energy goals. The 2,400-megawatt Hornsea 4 project would have complemented two existing Orsted wind farms and a third under construction. But Orsted said in a statement that the project "has seen several adverse developments", including rising supply chain costs, higher interest rates and an increased risk in building it on the planned timeline. "We've decided to discontinue the development of the Hornsea 4 project in its current form," Orsted chief executive Rasmus Errboe said. "The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market and operational risks have eroded the value creation," he added. The existing Hornsea 1 and 2 wind farms and the Hornsea 3 project will have a combined capacity exceeding five gigawatts. Orsted said shelving the Hornsea 4 project would cost the company between 3.5 billion and 4.5 billion kroner ($533 million and $685 million). "I'd like to emphasise that Orsted continues to firmly believe in the long-term fundamentals of and value perspectives for offshore wind in the UK," Errboe said. "We'll keep the project rights for the Hornsea 4 project in our development portfolio, and we'll seek to develop the project later in a way that is more value-creating for us and our shareholders." The British government said it would work with Orsted to revive the project. "We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe," said a spokesperson for Britain's Department for Energy Security and Net Zero. "We will work with Orsted to get Hornsea 4 back on track," the spokesperson said. Orsted was already dealt a $4 billion blow in 2023 when it cancelled wind farm projects in the United States, a crucial market for the group. Now the entire sector faces a major challenge in the United States after President Donald Trump froze federal permitting and loans for all offshore and onshore wind projects. Orsted also reported first-quarter results on Wednesday showing sales rose eight percent to 20.7 billion kroner, lower than the 21.7 billion kroner forecast by analysts surveyed by financial data firm FactSet. Its net profit, however, nearly doubled to 4.8 billion kroner. cbw/lth/yad
