Positive
Project advancing - milestone achieved
High Impact
Major milestone or critical setback
Orsted took final investment decision on Hornsea 3 Offshore Wind Farm on 20 December 2023. With a capacity of 2.9 GW, Hornsea 3 will be the world's single largest offshore wind farm, producing enough renewable electricity to power more than 3.3 million UK homes. Orsted had secured a Contract for Difference in allocation round 4 (July 2022) at an inflation-indexed strike price of GBP 37.35/MWh (2012 prices). All major contracts were in place at FID, including agreements with Siemens Gamesa (SG 14-236 DD turbines), NKT (HVDC export cables), Aibel and Hitachi (converter stations), Jan De Nul (cable installation), and SeAH Wind (monopile foundations at the new Teesside factory). Most capital expenditure was contracted ahead of recent inflationary pressures. Orsted will build the transmission assets and divest them to an OFTO post-commissioning under UK regulation.