Ørsted lands UK deal for 2.85 GW offshore wind farm

Danish utility Ørsted has been awarded a contract for difference by the UK Department for Business, Energy and Industrial Strategy (BEIS) for its Hornsea 3 offshore wind farm.

With a capacity of 2,852 MW, the world’s single largest offshore wind project will produce enough renewable electricity to power around 3.2m UK homes, making a significant contribution to the UK Government’s ambition of having 50 GW of offshore wind in operation by 2030.

Ørsted will build Hornsea 3, including transmission assets, and once the wind farm is fully operational, it will divest the transmission assets to a new owner in accordance with UK regulations. A final investment decision on the project is expected within 18 months and potentially as soon as by end of 2022.  

The two-way contract for difference (CfD) will run for up to 15 years starting after the commissioning of the wind farm, which is planned for 2027. The project was awarded at an inflation-indexed strike price of £37.35 ($44.65) per MWh in 2012 prices. After the CfD ends, Hornsea 3 will receive the market price for electricity or enter into new power purchase agreements. 

Hornsea 3 will contribute to Ørsted’s ambition of globally installing 30 GW offshore wind by 2030. The company currently has around 7.5 GW offshore wind in operation, 3.5 GW under construction, and another almost 11 GW of awarded capacity under development including Hornsea 3. The project will support up to 5,000 jobs during its construction phase with up to a further 1,200 permanent jobs both directly and in the supply chain for the long operational phase. It will be operated from Ørsted’s operations and maintenance hub in Grimsby. 

When Hornsea 3 comes online, Ørsted’s Hornsea zone – comprising Hornsea 1, 2 and 3 – will have a total capacity of in excess of 5 GW, making it the world’s largest offshore wind zone, covering the power consumption of some 5m UK homes. The Hornsea Zone will also include Ørsted’s Hornsea 4 project, which could have a capacity of approximately 2.6 GW.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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