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.
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.
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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.”
Image: The existing Hornsea development is already the world’s largest by area
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.”
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.”
A senior Labour MP has said the government needs to take “corrective action” over planned disability benefit cuts – as Sir Keir Starmer faces a growing backbench rebellion.
Tan Dhesi, chair of the influential Commons defence committee, told the Politics Hub with Sophy Ridge the “disappointing” local election results show the government must listen and learn, particularly over welfare reforms.
The government has proposed tightening the eligibility requirements for the personal independent payment, known as PIP.
A claimant must score a minimum of four points on one PIP daily living activity, such as preparing food, washing and bathing, using the toilet or reading, to receive the daily living element of the benefit.
Mr Dhesi, the MP for Slough, said “corrective action” needs to be taken but insisted if the government changed tact, it would not be a U-turn as the disability cuts were only proposals.
Image: Tan Dhesi spoke to Sky’s Sophy Ridge
“A government which is in listening mode should be looking at what the electorate is saying,” he said.
“And we need to make sure that it’s our moral duty, responsibility, to look after the most vulnerable within our community, whether that’s in Slough, whether that’s elsewhere across the country.
“So, I hope that the government will be taking on board that feedback and many of us as MPs are giving that feedback in various meetings happening here in Westminster and then we need to take corrective action.”
Image: Alex Davies-Jones said the government was seeking to ‘protect the vulnerable’
Minister Alex Davies-Jones told the Politics Hub a Labour government “will always seek to protect the most vulnerable” and it wants to “listen to people who have got real lived experience”.
She added she has the “utmost respect for Tan, he’s a great constituency MP and he’s doing exactly what he should be doing, is representing his constituency”.
Sir Keir is facing a rebellion from Labour MPs, with about 40 in the Red Wall – Labour’s traditional heartlands in the north of England – reposting a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.
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Several backbench Labour MPs also spoke out against the plans during a debate on PIP and disabled people in parliament on Wednesday.
Ian Byrne, MP for Liverpool West Derby, said he would “swim through vomit to vote against” the proposed changes and said: “This is not what the Labour Party was formed to do.”
Bell Ribeiro-Addy, the MP for Clapham and Brixton Hill, said she feared tightening PIP eligibility would cause deaths, adding: “Lest we forget that study that attributed 330,000 excess deaths in Britain between 2012 and 2019 to the last round of austerity cuts [under the Conservative government].”
Diane Abbott, the longest-serving female MP, accused the government of putting forward “contradictory arguments”.
“On the one hand, they insist they are helping the disabled by putting them back to work,” she said.
“But on the other hand, they say this cut will save £9bn. Well, you can’t do both.”
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‘I’ll struggle if I lose disability support’
However, fellow Labour MP David Pinto-Duschinsky, said MPs cannot “ignore this issue” of health-related benefit claimant figures rising at “twice the rate of underlying health conditions”.
Responding for the government, social security minister Sir Stephen Timms said PIP claims were set to “more than double, from two million to over 4.3 million this decade”.
“It would certainly not be in the interests of people currently claiming the benefits for the government to bury its head in the sand over that rate of increase,” he added.
A man whose dismembered body was found in a suitcase had raped and blackmailed a teenager, a court has heard.
The remains of Albert Alfonso, 62, and Paul Longworth, 71, were found in a suitcase and trunk which had been left near the Clifton Suspension Bridge in Bristol in July 2024.
Yostin Mosquera is on trial at the Old Bailey in London accused of murdering and dismembering Mr Alfonso and Mr Longworth.
The 35-year-old denies both murders but has admitted the manslaughter of Mr Alfonso.
A witness, giving evidence under the pseudonym James Smith, appeared at the trial by video link on Wednesday.
Mr Smith said he met Mr Alfonso nearly 20 years ago when he was around 17 or 18 and had gone to his flat for drinks.
He said he remembered drinking heavily and then waking up with a “banging headache”.
“I said to him, ‘what’s happened?’ – he showed me a video of me on all fours and he was penetrating me,” he told the court.
“I didn’t know what to do. I was mortified. At this point, I didn’t know my sexuality – I was confused and scared.”
He said Mr Alfonso told him if he did “favours”, the video would never be shared.
Under cross-examination, defence barrister Tom Little KC asked: “Does it cross your mind, looking back, that you were raped?”
“Now, yes,” Mr Smith replied.
“And does it cross your mind that your drink may have been spiked?”, the barrister asked.
“Now, yes,” the witness responded.
“Does it cross your mind that you were groomed by Albert Alfonso?”, Mr Little asked.
“Now, yes,” Mr Smith said.
After the alleged incident, the two met regularly, with Mr Alfonso paying Mr Smith around £150 for each sexual encounter, the court heard.
During the COVID pandemic, the witness said he became closer with Mr Alfonso and began spending time with Mr Longworth.
Mr Smith told the court he was later introduced to Mosquera.
Image: Yostin Mosquera is on trial at the Old Bailey. Pic: Metropolitan Police/PA
He said the relationship between Mosquera and Mr Alfonso was “good – very good”.
“I didn’t see anything that seemed like they disliked each other,” he added.
He described Mr Longworth as someone who “wouldn’t hurt a fly”.
Iran has rejected reports that Iranian nationals were allegedly involved in a plot to target the Israeli embassy in London.
In a statement posted on X, Iranian foreign minister Seyed Abbas Araghchi said: “We are seeing stories in the media that Iranian nationals are allegedly involved in a supposed plot to target the Israeli embassy in London.
“Iran in no uncertain terms categorically rejects any involvement in such actions and confirms that we have not been informed of any allegations via proper diplomatic channels.
“Iran has urged the UK to engage so that we may assist any probe into credible allegations. Timing and lack of engagement suggest that something is amiss.”
The Iranian foreign minister said there was a “history of third parties bent on derailing diplomacy and provoking escalation resorting to desperate measures, including false flag operations”.
“Iran stands ready to engage to shed light on what has truly inspired, and we reiterate that UK authorities should afford our citizens due process,” he added.
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John Bolton on Iran and China
It comes after media organisations including the Times newspaper reported the Israeli embassy in Kensington was understood to have been the target of an alleged plot.
Commander Dominic Murphy, head of the Metropolitan Police counter terrorism command, said: “Any speculation around this investigation could have a negative impact as we work to keep the public safe from potential threats.
“This is a fast-moving counter-terrorism investigation and there are significant operational reasons why we cannot provide further information at this time.
“As soon as possible we will look to share further details and in the meantime we would ask the public to remain vigilant and contact us if you have any concerns.”
The Israeli embassy has been approached for comment.