Ørsted has announced it will discontinue the Hornsea 4 offshore wind project in the United Kingdom in its current form. The decision follows the award of a Contract for Difference (CfD) in allocation round 6 (AR6) in September 2024.
The 2,400 MW project has faced a series of adverse developments since the CfD award. These include rising supply chain costs, increased interest rates and heightened risks related to construction and operation timelines. Ørsted stated that the combined effect of these factors has raised execution risks and reduced the project's expected value, leading to the decision to halt further investment and terminate associated supply chain contracts. As a result, the company will not proceed with delivering Hornsea 4 under the awarded CfD.
Despite this decision, Ørsted retains the seabed rights, grid connection agreement and Development Consent Order for Hornsea 4, and will consider options for future development of the site.
The company expects to incur break-away costs of between DKK 3.5 billion and DKK 4.5 billion in 2025. The impact on EBITDA is expected to range from DKK 3.0 billion to DKK 3.5 billion, including a write-down of offshore transmission assets and provisions for contract cancellation costs. These cancellation fees fall outside Ørsted's guided EBITDA. Additionally, capitalised construction costs of DKK 0.5 billion to DKK 1.0 billion will be written down, with no impact on EBITDA.
Ørsted has confirmed that its full-year 2025 EBITDA guidance, excluding cancellation costs and new partnerships, remains at DKK 25–28 billion. Its gross investment guidance is also unchanged at DKK 50–54 billion.
