Ørsted to discontinue the Hornsea 4 offshore wind project in its current form

DJ Ørsted to discontinue the Hornsea 4 offshore wind project in its current form

Ørsted A/S (Orsted) 
Ørsted to discontinue the Hornsea 4 offshore wind project in its current form 
07-May-2025 / 07:55 CET/CEST 
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7.5.2025 07:55:01 CEST | Ørsted A/S | Inside information 
Ørsted has today decided to discontinue the Hornsea 4 project in the UK in its current form. Since the Contract for 
Difference (CfD) award in allocation round 6 (AR6) in September 2024, the 2,400 MW Hornsea 4 project has seen several 
adverse developments relating to continued increase of supply chain costs, higher interest rates, and an increase in 
the risk to construct and operate Hornsea 4 on the planned timeline for a project of this scale. 
In combination, these developments have increased the execution risk and deteriorated the value creation of the 
project. Therefore, Ørsted has taken the decision to stop further spend on the 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. 
Ørsted will evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid 
connection agreement and Development Consent Order. 
Rasmus Errboe, Group President and CEO of Ørsted, says: 
"We remain fully committed to being an important partner to the UK government to help them achieve their ambitious 
target for offshore wind build-out and appreciate the work they've done to deliver a clear framework to support 
offshore wind. However, our capital allocation is based on a strict and value-focused approach, and after careful 
consideration, we've decided to discontinue the development of the Hornsea 4 project in its current form, well ahead of 
the planned Final Investment Decision later this year." 
"We've been maturing the project over the past nine months and have been working relentlessly with stakeholders and 
suppliers to manage the different project risks for a project of this scale. Throughout the development phase we've 
been very diligent in our approach to capital commitment to our suppliers, and our committed capital is well below our 
threshold. The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market 
and operational risks have eroded the value creation." 
"I'd like to emphasise that Ørsted continues to firmly believe in the long-term fundamentals of and value perspectives 
for offshore wind in the UK. We'll keep the project rights for the Hornsea 4 project in our development portfolio, and 
we'll seek to develop the project later in a way that is more value-creating for us and our shareholders." 
As a consequence of the decision, Ørsted expects to incur break-away costs of DKK 3.5 to 4.5 billion in 2025. The 
EBITDA impact is expected to be 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, capitalised construction costs 
of approx. DKK 0.5 to 1.0 billion will be written down (impact below EBITDA). 
Ørsted's previously guided EBITDA for 2025, excluding new partnership agreements and cancellation fees, of DKK 25-28 
billion remains unchanged. Similarly, Ørsted's gross investment guidance for 2025 is unchanged at DKK 50-54 billion. 
Global Media Relations 
Tom Christiansen 
[phone] 
[e-mail] 
Investor Relations 
Rasmus Keglberg Hærvig 
[phone] 
[e-mail] 
About Ørsted 
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and 
onshore wind farms, solar farms, energy storage facilities, and bioenergy plants. Ørsted is recognised on the CDP 
Climate Change A List as a global leader on climate action and was the first energy company in the world to have its 
science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in 
Denmark, Ørsted employs approx. 8,300 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2024, the 
group's revenue was DKK 71.0 billion (EUR 9.5 billion). Visit orsted.com or follow us. 
Attachments 
 . Ørsted CA no. 09 2025.pdf 
News Source: Ørsted A/S 
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Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
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ISIN:      DK0060094928 
Category Code: MSCM 
TIDM:      Orsted 
Sequence No.:  386600 
EQS News ID:  2131568 
 
End of Announcement EQS News Service 
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May 07, 2025 01:55 ET (05:55 GMT)