Latest news with #Hornsea3
Spectator
16 hours ago
- Business
- Spectator
Is Britain's wind power gamble about to backfire?
Over the last few years, we heard a lot about how the giant turbines that dominate hillsides and coastlines across Britain and Europe would power a new era of prosperity. They will generate an endless supply of cheap, environmentally friendly energy. They will create hundreds of thousands of 'well-paid green jobs'. And the countries that embraced it would become the technological leaders of the 21st century. Indeed, the former prime minister Boris Johnson promised to turn the UK into the 'Saudi Arabia of wind'. And yet, the outlook for the wind power industry currently looks far from secure. Today, Orsted, the Danish giant of the industry, has been forced into what is effectively a state-funded bailout. Has the wind has been knocked out of wind power? It has been a bad day for Orsted shareholders. The company's shares were down 28 per cent as it announced a rights issue to raise $9.4 billion () of fresh capital and they are now down by 47 per cent over the last year. The Danish government, which owns half the company, will put up its share of the money, meaning that, in effect, this is a taxpayer-funded rescue. Its immediate challenge is President Trump's decision to cancel wind farm developments in the United States. But Orsted has been struggling for the last year with rising costs and disruption to supply chains. As the Bloomberg energy expert Javier Blas put it, 'the problem with this company is that historically its leadership has been …building at 'any costs' GW of wind power, rather than 'profitable' GW wind power'. In other words, wind power that actually makes money is tricky. Britain will be particularly badly impacted by this. Orsted is a major player in the UK renewable energy industry. It has already pulled out of the massive Hornsea 4 wind farm in the North Sea, and it is now looking to sell Hornsea 3 as well, although it is unlikely there will be many offers. Of course, companies run into trouble all the time. And yet, when it comes to wind power, it is not just Orsted. Siemens Energy, another giant of the European industry, has also run into losses on its wind unit. There is a wider point to be made here than just the struggles of one business. Wind power was fine so long as there were unlimited subsidies on offer from the government. Once the industry is expected to deliver energy at reasonable prices, wind power no longer looks nearly as attractive. Britain has made a huge bet on wind power as a core part of both its industrial and energy strategy. It is starting to look as if that wager could go horribly wrong – and it may be too late to change course.
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
The Guardian
07-05-2025
- Business
- The Guardian
Danish firm shelves huge UK windfarm project over rising costs
One of the UK's largest planned offshore windfarms has been cancelled by its developer, the Danish wind power company Ørsted, as a result of higher costs and greater risk. 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 Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion 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.
Trade Arabia
06-03-2025
- Business
- Trade Arabia
Mammoet lands SeAH Wind offshore project in UK
Mammoet, a global leader in engineered heavy lifting and transport sectors, said it has along with Glacier Energy, and Hutchinson Engineering, been signed up as key subcontractors by SeAH Wind for its Hornsea 3 Offshore Wind Project in UK. With commercial production set to commence in the coming months, these subcontractors have been selected to support with the operational and logistical services within the 120-acre site located on the South Bank of Teesworks, UK. SeAH Wind will be supplying the monopile foundations for the Hornsea 3 Offshore Wind Project, off the Norfolk Coast in the North Sea. Upon completion, it will become the world's largest offshore wind farm. On the contract award, CEO Chris Sohn said: "At SeAH Wind, we are excited to partner with Mammoet, Glacier Energy, and Hutchinson Engineering for the Hornsea 3 project. These strategic appointments reflect our commitment to delivering market leading XXXL Monopiles." "With these trusted partners, we are confident that we will meet our project goals while upholding the highest standards of quality, safety, and efficiency," he stated. Mammoet has been appointed to provide self-propelled modular transporters (SPMTs) within the SeAH Wind facility. Its scope includes the transportation of can/cone structures and completed monopiles. By leveraging Mammoet's expertise in heavy transport solutions in offshore wind site logistics, SeAH Wind ensures a seamless and efficient movement of monopiles, minimizing downtime and improving overall production efficiency. Darren Watson, the sales manager from Mammoet, said: "We are delighted to be helping SeAH Wind to deliver the future of offshore wind foundations by providing marshalling capabilities that are constantly at the cutting edge of what can be lifted and transported." Glacier Energy will conduct non-destructive testing (NDT) of welds throughout the manufacturing process, ensuring the highest quality standards. Its rigorous NDT inspections will enhance the reliability and durability of the monopiles, ensuring they meet both Ørsted's stringent standards and international offshore wind regulations. Scott Martin, Group CEO at Glacier Energy, said: "We are proud to be supporting SeAH Wind with NDT services for the Hornsea 3 project, marking a significant milestone for Glacier Energy." "This collaboration builds on our strong heritage of supporting wind foundation manufacturers and reinforces our commitment to the northeast of England's growth. We look forward to working with SeAH Wind and playing a pivotal role in the success of the project," he added. Hutchinson Engineering has been tasked with supplying secondary steel components for the Hornsea 3 project. SeAH Wind sought a UK-based company capable of delivering these complex parts in compliance with stringent Ørsted drawings and specifications. Hutchinson Engineering's previous experience on Ørsted projects, combined with its expertise, makes them an ideal partner for this phase of the project. Steve Adams, Managing Director at Hutchinsons Engineering, said: "Hutchinson is delighted to have been awarded the Secondary Steel contract by SeAH Wind."
