Ørsted Confirms Development of Hornsea 3, World’s Largest Offshore Wind Farm
Danish energy company Ørsted has announced the development of the Hornsea 3 project in the North Sea, which is set to become the world’s largest offshore wind farm. With increased financial backing from the UK, Ørsted plans to invest £8 billion in the 2.9 gigawatt wind farm off the Yorkshire coast. The project aims to power around 3.3 million homes, marking a significant milestone for Ørsted and signaling renewed confidence in the UK’s offshore wind sector.
Challenges and Commitment
Ørsted has faced recent challenges, including a $4 billion writedown in the United States and key executive departures. However, Duncan Clark, head of Ørsted UK and Ireland, emphasized the importance of the Hornsea 3 project in advancing the UK’s climate and clean energy objectives. He stated that it will contribute to the government’s targets while increasing energy independence and creating local jobs. This project represents Ørsted’s most substantial investment decision to date, highlighting their commitment to the UK’s clean energy infrastructure.
Wind Farms Criticized
Lois Perry, director of Car26, a climate-focused pressure group, has denounced wind farms as “pointless” and expensive. She argues that subsidies for wind farms are ineffective and detrimental to the affordability and reliability of electricity. Perry claims that wind farms contribute to escalating electricity costs and render the grid unstable and intermittent. Drawing a comparison with the United States, where fracking is prevalent, she asserts that electricity there is eight times more affordable than in countries heavily reliant on wind energy.
Perry also raises concerns about the economic consequences of prioritizing renewables, stating that as a nation leans more towards renewable energy, its economy becomes less productive. She questions the viability of renewable projects in a free market, highlighting their dependence on government support, often in the form of subsidies.
Ørsted’s Future Plans
Despite the challenges faced by Ørsted, the company remains optimistic about the UK’s offshore wind sector. Ørsted plans to bid for a portion of Hornsea’s capacity in the next government contracts auction in 2024, with analysts anticipating a strategic move for approximately 700 megawatts. The wind farm is expected to be operational by the end of 2027, significantly contributing to the UK’s green energy capabilities.
The Hornsea 3 project’s development comes after uncertainties earlier this year, with Ørsted seeking additional UK government support due to cost surges linked to rising interest rates and supply chain strains. However, the project secured contracts in July 2022, guaranteeing an inflation-linked electricity price.
While rival Vattenfall halted a similar project due to cost increases, Ørsted’s commitment to the UK’s offshore wind sector demonstrates their confidence in the future of renewable energy in the country.
