Orsted Approves World’s Largest Offshore Wind Farm Project with 2.9 GW Capacity

By Editor


Orsted has announced the final investment decision (FID) on Hornsea 3, the globe’s largest single offshore wind farm project.

Scheduled for completion around the conclusion of 2027, this project will hold a capacity of 2.9 GW, marking Orsted’s third gigawatt-scale project in the Hornsea zone. Notably, Orsted is already operating Hornsea 1 (1.2 GW) and Hornsea 2 (1.3 GW) from its Grimsby operations and maintenance hub.

The United Kingdom stands as a central market for Orsted, boasting robust political support and ambitious offshore wind deployment goals. Presently managing 12 offshore wind farms in the UK, Orsted has been committed to fortifying its footprint in the region’s renewable energy sector.

In July 2022, Orsted secured a contract for difference (CfD) for Hornsea 3 at a strike price of GBP 37.35 per MWh in 2012 prices, allowing for a reduction in the awarded CfD capacity. The company aims to submit a portion of Hornsea 3’s capacity into the UK’s upcoming allocation round 6.

With major contracts in place, including a deal with Siemens Gamesa for SG 14-236 DD offshore wind turbines, Orsted’s Hornsea 3, benefitting from a well-established supply chain and synergies with its predecessors, has secured a robust risk-reward profile. The project is poised to create significant value aligned with Orsted’s targeted lifecycle project return range of 150-300 basis points atop the weighted average cost of capital.

Hornsea 3 anticipates providing low-cost, renewable energy to more than 3.3 million UK households, accompanied by the generation of thousands of jobs and substantial investment in the UK’s offshore wind supply chain.

Orsted’s Group President and CEO, Mads Nipper, applauded the decision, highlighting its potential to deliver extensive green energy benefits while Duncan Clark, Head of Orsted UK & Ireland, emphasized its contribution towards the UK’s clean energy objectives and local job creation.

The project’s capacity expansion, coupled with the prospect of Hornsea 4, signals a momentous advancement for Orsted’s Hornsea trio. As part of the UK’s offshore wind growth strategy aiming for 50 GW of operational capacity by 2030, Hornsea 3 holds a pivotal position in augmenting the nation’s energy security and climate targets.

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