Ørsted Ends Partnership with Cadeler Amidst Suspension of Hornsea 4 Wind Project

Citing data from Cadeler A/S, a prominent offshore wind installation company based in Copenhagen, it has been revealed that Ørsted A/S has decided to end their long-term contract for a new A-Class wind turbine installation vessel. This agreement, which was first announced on April 8, 2024, was intended to secure vessel capacity from the beginning of 2027 until the close of 2030.

The cancellation is largely due to Ørsted’s choice to halt growth on the Hornsea 4 offshore wind farm. Although this decision cuts short what was anticipated to be four years of utilization for Cadeler’s vessel, the company will receive compensation as per their agreement and is now exploring other project opportunities with different partners.

in May, Ørsted disclosed its plans to abandon the Hornsea 4 project—boasting a capacity of 2,400 MW—citing rising supply chain expenses and increased interest rates as key factors. They noted that these challenges have heightened execution risks and diminished potential value creation for the initiative.

The terminated deal involved one of Cadeler’s innovative A-Class vessels designed with hybrid capabilities that allow it to transport and install both XXL monopile foundations and some of the largest wind turbines globally. Currently, Cadeler has three such vessels under construction in China.

Interestingly enough, despite this setback with Ørsted, Cadeler remains optimistic about its financial outlook. The company asserts that this termination won’t negatively impact its long-term financial health; in fact, they’ve adjusted their revenue forecasts upward for 2025. They now anticipate full-year revenues between EUR 588-628 million—a important increase from earlier estimates ranging from EUR 485-525 million. Similarly, EBITDA projections have also risen from EUR 278-318 million to an expected range of EUR 381-421 million.

Cadeler continues to stand out as a leader in offshore wind installations with what they claim is “the industry’s largest fleet” dedicated specifically for these operations.The firm trades publicly on both the New York Stock Exchange (CDLR) and Oslo Stock Exchange (CADLR).

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