May 7, 2025, 12:27 PM
May 7, 2025, 12:27 PM

Orsted cancels Hornsea 4 project, threatening UK's clean energy goals

Provocative
Highlights
  • Orsted has cancelled its Hornsea 4 wind farm project off the Yorkshire coast, a move sparked by rising costs and economic pressures.
  • The UK government previously aimed for significantly increased clean energy production by 2030, including tripling offshore wind capacity.
  • The challenge to meet these ambitious targets raises serious questions about the future of the UK’s clean energy mission.
Story

In a significant setback for the United Kingdom's clean energy ambitions, the Danish energy firm Orsted has recently announced the cancellation of the Hornsea 4 wind farm project, which was planned to be located off the coast of Yorkshire. This ambitious offshore wind farm intended to become one of the largest facilities in the world, boasting a capacity of 2.4GW capable of powering over a million homes, was deemed financially unfeasible by the company. Despite Orsted having previously signed a 15-year contract with the UK government to sell power at an agreed price, rising costs attributed to global inflation and supply chain issues have rendered the project unsustainable. This cancellation follows another setback in the sector, where Swedish company Vattenfall halted plans for a 1.4GW wind farm off Norfolk in July 2023, again due to economic pressures, although the project has since been sold to German company RWE for continuation. The difficulties faced by offshore developers, including soaring construction costs, raise serious concerns regarding the UK government’s ambitious clean power targets set for 2030. Under these targets, the government aims to triple offshore wind capacity and double solar and onshore wind generation, necessitating extensive upgrades to the electricity grid, including the installation of around 620 miles of new power lines and substations. Furthermore, many local communities are expressing opposition to new energy infrastructure projects in their vicinity, complicating the government's clean energy strategy. Industry experts, as well as members of the Conservative and Reform parties, have voiced skepticism about the feasibility of achieving the 2030 targets—emphasizing that the timeline may not allow enough room for the necessary infrastructure development. Dieter Helm, a professor of economic policy at the University of Oxford, has voiced his opinion that fulfilling this ambitious goal within the designated timeframe would be near impossible and could lead to escalation in costs. Chris Stark, head of the government’s Clean Power 2030 mission, acknowledges the challenges involved but remains optimistic that with a major effort, the targets can still be reached. Energy Secretary Ed Miliband has also reaffirmed the importance of the plan in providing energy security while addressing the climate crisis and reducing bills for consumers, insisting that despite setbacks, there remains a potent pipeline of projects that could help achieve these crucial clean power goals by 2030.

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