Project On Hold

On 7 May 2025, Ørsted announced that it had decided to discontinue development of the 2,400 MW Hornsea 4 offshore wind project in the UK in its current form. Since the project secured a Contract for Difference (CfD) in Allocation Round 6 in September 2024, Hornsea 4 had been exposed to several adverse developments, including continued increases in supply chain costs, higher interest rates, and a heightened risk profile for constructing and operating a project of this scale on the planned timeline. In combination, these factors increased execution risk and eroded the project’s value creation, leading Ørsted to halt further spending on Hornsea 4 and terminate its supply chain contracts, meaning it will not deliver the project under the AR6 CfD. Ørsted emphasised that it will retain the project’s key underlying rights and consents, including seabed rights, the grid connection agreement, and the Development Consent Order, and will evaluate options for future development of Hornsea 4 on a different basis. The company framed the move as consistent with a strict, value-focused capital allocation approach, noting that the decision was taken well ahead of the planned Final Investment Decision. Ørsted also disclosed expected break-away costs of DKK 3.5–4.5 billion in 2025, including an EBITDA impact of DKK 3.0–3.5 billion from write-downs of offshore transmission assets and contract cancellation provisions, plus additional write-downs of capitalised construction costs. At the same time, the company reaffirmed its broader commitment to UK offshore wind and to keeping Hornsea 4 in its development portfolio for potential later redevelopment in a more value-creating way.