Wind farm cancellation brings renewables fears

THE cancellation of one of the UK's largest offshore wind farms has raised concerns over the impact the renewable energy sector can have on the North East economy.

- BY TOM KEIGHLEY Business writer [e-mail]

Danish energy giant Ørsted has halted work on the final wind farm of the Hornsea zone in the North Sea, citing rising supply chain costs, higher interest rates and increased timeline risks on the construction of the 2.4GW Hornsea Four development.

The decision has dealt a blow to clean energy ambitions in the UK following the project's approval in 2023, with industry bosses saying that cost increases had made the project economically unviable.

Ørsted had planned a 180-turbine development to complete the Hornsea zone after it secured a Contract for Difference award from the Government last September.

In an update to investors, Ørsted said it had stopped spending on the project and terminated supply chain contracts. Costs of between 3.5bn-4.5bn Danish Krone (£399m-£513m) are now expected following the decision, including a write-down of assets and contract cancellation fees.

However, Ørsted says it will consider future development as it hangs on to seabed rights, a grid connection agreement and a Development Consent Order.