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.”
Kemi Badenoch has repeatedly refused to say whether she admires Reform UK leader Nigel Farage.
Speaking to Sky News’ political editor Beth Rigby, the Tory leader said she did not “understand the question” when asked if she held her rival in high regard.
Asked what she thought of Mr Farage, whose party is currently leading in the polls, Ms Badenoch replied: “I think it’s very interesting that a lot of the media in Westminster is very interested about asking about Nigel Farage.
“I’m not interested in Nigel Farage, I’m interested in the Conservative Party.”
Ms Badenoch was speaking against the backdrop of the Conservative Party conference in Manchester, where the party has announced a string of policies, including a promise to leave the European Convention on Human Rights (ECHR) and “ICE-style” deportations if she wins the next election.
The announcements have been interpreted as an attempt to respond to the threat posed by Reform, who have already announced plans to leave the ECHR and carry out mass deportations.
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Last month, they also vowed to scrap indefinite leave to remain, which gives people the right to settle, work and study in the UK and claim benefits, and to make obtaining British citizenship the only route to permanent residence in Britain.
However, the Conservatives have sought to use their conference to distinguish themselves from Reform, branding their spending plans “socialist”.
It comes despite a poll of Tory members by YouGov showing that 64% support an electoral pact with Reform, while almost half of Tory members – 46% – would support a full-blown merger.
Speaking to Sky News, Ms Badenoch admitted there was “a lot we could do better” given the Conservatives had dropped in the polls from 26% to 17% and her personal poll ratings stood at -47.
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Tories ‘failed’ on immigration
But she said: “I don’t let these things distract me. The fact of the matter is that last year we lost in a historic defeat. We never had so few MPs, and it’s going to take time to come back from that.
“I am absolutely determined to get our party out of this, but I always said that things would get worse before they got better because we’d be out of government.”
On Monday, Tory MP Andrew Rosindell said he believed the Conservatives and Reform needed to work together.
“I’ve made it clear all the way through, and nothing has changed, that I am for the Conservatives and Reform working together,” he told GB News.
“We need right-of-centre unity to defeat the left.
“If that means the Conservatives and Reform working together, we should do it. I don’t see Reform as our enemies. It’s a split on the right, and we need to come together.”
Put to her that the Tories may need to work with Reform, Ms Badenoch ruled out a pact and told Beth Rigby: “I’m not interested in doing pacts. I was not elected to have a pact with Reform.
“I was elected to change the Conservative Party, make it clear what we stand for and that’s what I’ve done at this conference.
“Robert Jenrick is not the leader of the Conservative Party, neither is Andrew Rosindell. I am.”
The man injured by a police bullet in the Manchester synagogue attack feels so unsafe he no longer wants to live in this country, his ex-wife has told Sky News.
Along with their children, Naomi Finlay has been visiting Yoni Finlay in hospital since the attack last week.
She said he was “shocked” to hear about the level of antisemitism she and their children had been facing before the synagogue was targeted.
“When I went to see him in the hospital, I spoke to him about some of the antisemitism we’d faced personally,” Mrs Finlay said.
“Some of the things I hadn’t discussed with him before, and he didn’t know. And he was really, really upset for me and the children that this is what we’ve been through.
“He expressed that he definitely does not feel safe in this country – and he’s questioning his future here.”
Image: Yoni Finlay is still in hospital after being injured by police gunfire during the attack
Ms Finlay told Sky News that she and her children have faced threats and abuse, some reported to the police.
“We’ve been shouted at, the kids have been shouted at,” she said.
“My son, his biggest fear is being recognised as Jewish. The second he leaves the synagogue, the kippah comes off his head.
“On October the 7th, two years ago, someone tried to knock my brother over while he was walking back from the synagogue.”
Image: Naomi Finlay says her family have been on ‘constant alert’
‘It’s something you’ve been waiting for’
Ms Finlay added that although the attack on the Heaton Park synagogue was a shock, as her family had been living on “constant alert”, it did not come as a surprise.
“The second I heard something, I knew absolutely – I knew what it was,” she added. “There’s no doubt in your mind. Because it’s something, yes, you’ve been waiting for – but anticipating with dread.”
It took hours before Ms Finlay was able to find out from a family member who was also at the synagogue that Yoni had been injured but was still alive.
“We live close to the synagogue – we saw and heard everything,” she said. “The beginning of the day – where we are just on the streets asking anyone, ‘Have you seen him? Have you seen him?’ – that was definitely the hardest part.
“It was so difficult for the kids, because that’s their dad.”
Yoni was among those barricading the doors to stop the attacker, Jihad al Shamie, from getting inside the synagogue.
Al Shamie was shot and killed by police, but one of their bullets came through the synagogue door – striking Yoni and killing Adrian Daulby, one of the two men who lost their lives.
Yoni was in surgery for seven hours on the day of the attack. Ms Finlay added he “remembers everything”, including the moment the bullet struck.
Although she said he is still in a lot of pain, he is now stable and recovering.
“The kids have been taking him some treats,” she said, “saving him half of their chocolate bars and taking them into him.
“Things from school, letters from friends they’ve been taking in to show him. They are just really wanting him back.”
‘Who’s going to protect us?’
Two years to the day since the 7 October terror attack in Israel, Ms Finlay finds it “really hurtful” that pro-Palestine marches are taking place across the country, less than a week on from the attack in which Yoni was injured.
“It was just that little bit further away – and now it’s not further away,” she said. “Even today there’s protests going on – on one of the saddest days for Jewish people worldwide.
“I feel like we can’t even get a break on that one day to actually grieve and process our feelings.”
Although she said the police have been “amazing” since the attack, she worries about what will happen to her and her family when the attention dies down.
“We worry that in a few weeks, when all this simmers down, are we still going to feel reassured? Are we still going to be protected?
“You know, who’s going to look after our kids when they’re in school? Who’s going to look after us when we go pray in the synagogue? Who’s going to protect us?”
The yellow ribbon has been used as a symbol of the plight of those taken captive since the 1979 US-Iranian hostage crisis, and has become synonymous with the hostages held in Gaza since 7 October 2023.
The ribbons are used as part of the ‘Bring Them Home’ campaign, which was introduced to raise awareness of the hostages’ plight and help amplify calls for the unconditional release of those still held by Hamas.
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Two years on from October 7 attacks
The Metropolitan Police told Sky News: “Officers have stepped up reassurance patrols in the Muswell Hill area, following reports that yellow ribbons were removed from fence poles.”
A spokesperson said the force was made aware of a video circulating online which “appears to show a woman removing the ribbons in Muswell Hill” at 4.25pm on Monday.
“Officers attended the location and are reviewing the footage to determine whether any offences, including hate crime or criminal damage, have been committed. Enquiries remain ongoing,” the spokesperson added.
Officers are asking anyone with information to contact the force.
Israel says 48 hostages remain in Gaza, 20 of whom are believed to be alive.
Gaza’s health ministry says Israel’s offensive has killed more than 67,000 people in the region since 7 October 2023. It does not differentiate between civilians and combatants in its figures, but says more than half of those killed are women and children.