The developer of the Hornsea 4 windfarm expansion has “discontinued” the project, blaming a surge in challenges including higher costs.

Orsted made the announcement while revealing a bigger than expected rise in first quarter profits despite increased headwinds facing its offshore wind interests.

The Danish firm secured funding for both Hornsea 3 and Hornsea 4 under the government’s auction of renewable energy “contracts for difference” last year.

Money latest: The challenges faced by a house seller

The projects, when combined, would have more than doubled the size of the existing Hornsea windfarm off the East Yorkshire coast – already the world’s largest.

It had the potential to add 2,400 MW of peak capacity – enough to power 2.6 million homes.

But the company said on Wednesday that Hornsea 4 was no longer viable in its current form.

It cited “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”.

It added: “Orsted will evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid connection agreement and Development Consent Order.”

The decision represents a blow to the government’s green energy ambitions.

It wants to eliminate the UK’s reliance on natural gas for energy security which, it says, will erase the country’s exposure to price volatility, bring down bills and bolster the fight against climate change at the same time.

Orsted boss Rasmus Errboe said: “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.”

Read more:
Wind power investment is good news but there are many challenges

A Department for Energy Security and Net Zero spokesperson responded: “We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Orsted to get Hornsea 4 back on track.

“We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets.

“Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain’s energy security as part of our Plan for Change.”

Dhara Vyas, the chief executive of industry body Energy UK, responded: “In 2024, wind overtook gas as GB’s largest source of power. Along with the broad range of technologies we have, wind has already and will continue to play a significant role in reducing our reliance on foreign fossil fuels, and building a resilient energy system powered predominately by British sources.

“Not only will this boost energy security, it will grow our economy and bring down bills in the long-term.

“The loss of such a big project will raise the stakes yet further for the forthcoming Contracts for Difference auction round, AR7.

“Whilst Orsted has been clear this is not a result of government policy, with offshore wind playing such a critical role in our future energy ambitions it’s vital that the government doubles down to ensure AR7 is a success.”

Greenpeace UK’s head of climate, Mel Evans, said: “It is a tragic irony that gas-driven inflation is threatening the very thing that promises to bring down the soaring cost of energy, which has sent inflation and manufacturing costs through the roof. Getting off volatile and expensive gas and making renewables the backbone of our energy system has never been more necessary than it is right now.

“Post-COVID supply chain breakdowns have also made everything much harder to build, on time or on budget.

“This is why the government must double down on its commitment to clean power and invest heavily in domestic wind manufacturing. This would help to overcome the supply chain issues faced by companies like Orsted and lower costs, which would be good for the government’s clean power plan, good for jobs and good for Britain.”

Red Wall Labour MPs are demanding ministers “act now before it’s too late” and reverse the unpopular cut to winter fuel payments.

A number of MPs in the Red Wall – the term used to describe Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.

They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing that doing so “isn’t weak, it takes us to a position of strength”.

Politics latest: Farage hits polling high after election win

The group, thought to number about 40 MPs, met last night following the fallout of local election results in England, which saw Labour narrowly lose the Runcorn by-election, as well as control of Doncaster Council, to Reform.

In addition, Nigel Farage’s party picked up more than 650 councillors and won control of 10 councils in Labour strongholds such as Durham.

👉Listen to Politics At Sam And Anne’s on your podcast app👈

Although Labour narrowly held on to mayoralties in Doncaster and the West of England, it lost control of Doncaster Council – the only local authority it had control of in this set of elections – to Mr Farage’s party, which also gained its own mayors in Greater Lincolnshire and Hull and East Yorkshire.

The MPs said the poll was the “big test for the prime minister” but that the party’s voters had “told us loudly and clearly that we have not met their expectations”.

Following the results, Sir Keir Starmer said the message he was taking away from the results was that “we must deliver that change even more quickly. We must go even further.”

His response has drawn an angry reaction from some Labour MPs who believe it amounted to ignoring voters’ concerns.

One of the MPs who was present at last night’s meeting told Sky News there was “lots of anger at the government’s response to the results”.

“People acknowledged the winter fuel allowance was the main issue for us on the doorstep. There is a lack of vision from this government, and residents don’t see it.”

Another added: “Everyone was furious”.

Elsewhere in the statement, the MPs urged the party leadership to “visit our areas, listen and rebuild the social contract between government and the people”.

“The prime minister has shown strong leadership internationally, which must now be matched at home,” the statement read.

“The demands raised by new MPs from post-industrial towns where infrastructure is poor, with years of underinvestment, must be taken off the too-difficult-to-do list. Breakaway from Treasury orthodoxy, otherwise we will never get the investment we desperately need.”

It added: “The government needs to improve its messaging by telling our story and articulating our values in the language that resonates and is heard.

“Labour cannot afford to lose the Red Wall again as it reopens the route to a future of opposition and an existential crisis. Without red wall communities, we are not the Labour Party.

Read more:
How Nigel Farage is flirting with Labour’s most loyal voters
The choice facing Labour in face of real Reform UK threat

“The government has to act now before it’s too late.”

The government has also drawn criticism for the winter fuel policy from outside Westminster.

On Tuesday, Welsh First Minister Baroness Eluned Morgan called for the cuts to winter fuel allowance to be reviewed in a landmark speech.

However, Downing Street has ruled out a U-turn on means testing the winter fuel payment.

The prime minister’s official spokesman said: “The policy is set out, there will not be a change to the government’s policy.”

They added that the decision was necessary “to ensure economic stability and repair the public finances following the £22bn black hole left by the previous government”.

The daughters of a woman who vanished more than seven years ago have made a fresh appeal to find their missing mum.

Stefana Otilia Malinici has not been seen by her family and friends since she left her home on Beccles Drive in Barking, east London, on 6 September 2017.

The 45-year-old, who is also known as Otilia, was 37 at the time of her disappearance and working as a cleaner in the capital.

The last sighting of her was on CCTV when she went into a shop on Green Lane in Ilford on 9 September 2017.

Police believe she may have boarded the No 5 bus at 10.14pm from Wood Lane in Dagenham the next day – on 10 September 2017.

Since then, police have not been able to trace her.

In a statement, her daughters, said: “It has now been more than seven years without our mother. We have grown up without her and miss her every day.

“She always brings support and love for anyone who needs it, even strangers and she always tries to cheer people up.

“We appeal to the public for anyone to come forward if they know anything about her or her whereabouts.

“We also appeal to her directly, please return home to us.”

Otilia, who is Romanian, is classed as vulnerable and in the intervening years has not made contact with her husband or children.

She was last seen wearing a black top with a large light coloured motif, dark tight jeans or leggings tucked into flat dark, mid-calf length boots, and a dark coloured three-quarter length fitted jacket. She also had reddish hair in a bob style at the time.

Read more from Sky News:
Teenagers to be allowed to drive trains
GCSE results to be released digitally
More jail time for criminals who skip sentencing

Detective Chief Inspector Kam Sodhi, from the Metropolitan Police’s east area public protection unit, said: “It is now more than seven years since Otilia was reported missing and we are continuing our work to find out where she is.

“While there is no evidence to suggest that Otilia has come to physical harm, we cannot rule this out.

“Her family here in the UK and in Romania are still carrying on their daily lives without knowing where their loved one is.

“Her daughters have grown up without their mother, so we urge anyone who may know Otilia, or where she is, to come forward without further delay.

“We ask anyone who has provided shelter or support to Otilia to also please contact police. Even if this was not recently, we want to hear from you.”