Ørsted has announced the discontinuation of its 2,400 MW Hornsea 4 offshore wind project in the UK, citing increased supply chain costs, rising interest rates, and higher project execution risks.

Awarded a Contract for Difference (CfD) in the UK’s Allocation Round 6 in September 2024, Hornsea 4 was expected to be a major addition to the country's renewable energy infrastructure. However, Ørsted stated that macroeconomic pressures and deteriorating project value led to the decision to terminate current supply chain contracts and stop all spending on the project.

Rasmus Errboe, Group President and CEO of Ørsted, emphasized the company’s commitment to the UK’s renewable energy goals but stated that the capital allocation must align with value creation.

Despite the halt, the company retains the seabed rights, grid connection agreement, and Development Consent Order for Hornsea 4, keeping open the possibility of future redevelopment.

The cancellation is expected to result in break-away costs of DKK 3.5–4.5 billion in 2025. An EBITDA impact of DKK 3.0–3.5 billion is anticipated, along with write-downs of capitalized construction costs.