Tuesday, May 21, 2024

Ørsted takes FID on world’s single-largest offshore wind farm

Ørsted, a Danish energy company, has taken a final investment decision (FID) for Hornsea 3, which it says is the world’s single largest offshore wind farm. The wind farm will have a groundbreaking capacity of 2.9 GW and is expected to be completed around the end of 2027.

This will be Ørsted’s third gigawatt-scale project in the Hornsea zone, following Hornsea 1 and Hornsea 2, which are already being operated from Ørsted’s operations and maintenance hub in Grimsby.

The UK is a key market for Ørsted, and it is one of the largest markets for offshore wind globally. This is due to strong political support and ambitious targets for offshore wind capacity expansion. Currently, Ørsted is operating 12 offshore wind farms in the UK.

Ørsted has all major contracts for Hornsea 3 in place, including an agreement with Siemens Gamesa for SG 14-236 DD offshore wind turbines, which have a capacity of 14 MW excluding power boost. Hornsea 3 is strategically positioned to benefit from a well-established supply chain and synergies with Hornsea 1 and 2. It will provide low-cost, green energy for the UK and deliver thousands of high-quality jobs and billions of pounds of investment in the UK’s offshore wind supply chain.

With a capacity of 2.9 GW, Hornsea 3 will produce enough low-cost, renewable electricity to power more than 3.3 million UK homes. This is a significant step toward the government’s goal of having 50 GW offshore wind in operation by 2030 under the British Energy Security Strategy.

During the construction phase, the project will create up to 5,000 jobs, while up to an additional 1,200 permanent jobs will be created directly and in the supply chain during the long operational phase. The wind farm will be managed from Ørsted’s operations and maintenance hub in Grimsby.

Hornsea 3 wind farm is located 160 km off the Yorkshire coast. Once it comes online, it will be part of Ørsted’s Hornsea trio, which will have a total capacity of over 5 GW, making it the world’s largest operating offshore wind zone.

Ørsted will build Hornsea 3, which includes transmission assets such as offshore and onshore substations and export cables. After the wind farm has been fully commissioned, Ørsted will divest the transmission assets to a new owner in accordance with UK regulations.

In addition to Hornsea 3, the Hornsea zone will also include Ørsted’s Hornsea 4 project, which has a capacity of up to 2.6 GW. The UK government granted Hornsea 4 its development consent order earlier this year, and it is now eligible for upcoming contract for difference (CfD) allocation rounds.

“Hornsea 3 will be a cornerstone in achieving the UK government’s climate and clean energy targets while increasing energy independence and creating local jobs,” said Duncan Clark, Head of Ørsted UK & Ireland. “Our decision to build Hornsea 3 is a vote of confidence in the UK market for offshore wind, as we continue to invest significantly in UK clean energy infrastructure and in the UK supply chain.”