Ørsted has decided to discontinue the Hornsea 4 project in the U.K. in its current form, citing adverse developments like increase in supply chain costs, higher interest rates…
Ørsted has decided to discontinue the Hornsea 4 project in the U.K. in its current form, citing adverse developments like increase in supply chain costs, higher interest rates, and an increase in the risk to construct and operate the project on the planned timeline.
Ørsted has taken the decision to stop further spend on the 2,400 MW Hornsea 4 project at this time and terminate the project’s supply chain contracts, meaning that Ørsted will not deliver Hornsea 4 under the CfD awarded in AR6.
The company said it will evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid connection agreement and Development Consent Order.
As a consequence of the decision, Ørsted expects to incur break-away costs of $470 million to $680 million (DKK 3.5 to 4.5 billion) in 2025.
The EBITDA impact is expected to be $455 million to $530 million (DKK 3.0 to 3.5 billion), this includes a write-down of the offshore transmission assets and a provision for contract cancellation fees (not part of guided EBITDA).
In addition, capitalized construction costs of approximately $76 million to $152 million (DKK 0.5 to 1.0 billion) will be written down (impact below EBITDA).
“Our capital
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