World's single

The United Kingdom, being a core market for Ørsted, boasts one of the world's most significant offshore wind markets, characterized by robust political support and ambitious expansion goals. Mads Nipper, Group President and CEO of Ørsted, highlighted the company's commitment, stating, "Offshore wind is an extremely competitive global market, so we also welcome the attractive policy regime in the UK, which has helped secure this investment."

With major contracts, including an agreement with Siemens Gamesa for SG 14-236 DD offshore wind turbines, Hornsea 3 is strategically positioned to benefit from a well-established supply chain and synergies with Hornsea 1 and 2. Duncan Clark, Head of Ørsted UK & Ireland, emphasized the significance of Hornsea 3 in achieving the UK government's climate and clean energy targets, creating jobs, and enhancing energy independence.

The project aims to power "more than 3.3 million UK homes."

Economic impact and jobs creation

Hornsea 3 is not just about energy production; it is expected to generate substantial economic benefits. The wind farm will support up to 5,000 jobs during its construction phase, with an additional 1,200 permanent jobs directly and in the supply chain during the long operational phase. The project is set to inject billions of pounds into the UK's offshore wind supply chain, significantly boosting the country's clean energy infrastructure.

The completion of Hornsea 3 will contribute to Ørsted's Hornsea trio, comprising Hornsea 1, 2, and 3, with a collective capacity exceeding 5 GW, solidifying its status as the world's largest operating offshore wind zone. Hornsea 4, Ørsted's next project with a potential capacity of up to 2.6 GW, is also on the horizon, having received its development consent order from the UK government earlier in 2023.

Financial and regulatory details

Ørsted secured a Contract for Difference (CfD) for Hornsea 3 in July 2022 at an inflation-indexed strike price of GBP 37.35 per MWh in 2012 prices. The CfD framework allows flexibility in the awarded capacity, and Ørsted plans to submit a share of Hornsea 3's capacity into the UK's upcoming Allocation Round 6.

Upon completion, Ørsted will divest the transmission assets of Hornsea 3, including offshore and onshore substations and export cables, by UK regulations. The CfD for Hornsea 3 spans up to 15 years, starting after the wind farm's commissioning, with the strike price inflation-indexed throughout the CfD period.

Despite external challenges, including inflationary pressures and supply chain disruptions, Ørsted remains optimistic about the project's viability, underscoring the company's ability to navigate a highly competitive global market.

With Hornsea 3, Ørsted takes a pioneering step towards advancing the global offshore wind industry while reinforcing its commitment to sustainable energy solutions. The wind farm's scale, economic impact, and job creation underscore Ørsted's dedication to driving the green energy transition and contributing to the UK's ambitious clean energy goals.