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Orsted terminates major Cadeler vessel contract

Primary reason for termination is Orsted halting development of its massive Hornsea 4 offshore wind project in UK North Sea, says Cadeler

The Cadeler vessel can transport and install seven complete 15MW wind turbine sets per load, and is also able to install foundations.
The Cadeler vessel can transport and install seven complete 15MW wind turbine sets per load, and is also able to install foundations.Photo: Cadeler
Journalist

Orsted has terminated a long-term agreement for an offshore wind farm installation vessel supplied by Cadeler, which is expecting compensation as a result.

Cadeler announced yesterday that it had received the termination notice from Danish compatriot Orsted for an A-Class wind farm installation vessel.

The termination is mainly due to Orsted’s decision to halt development of its 2.4GW Hornsea 4 offshore wind farm in the UK, said Cadeler.

Cadeler said it is entitled to “agreed compensation” due to the termination and is now free to deploy the vessel on other projects currently under discussion with third parties.

Cadeler does not believe that the termination will negatively impact its long-term financial performance and said the compensation payment will in fact “positively impact financial guidance” for the 2025 calendar year.

Offshore wind developer Orsted, which was approached for comment, awarded the long-term contract in April last year, securing installation vessel capacity for upcoming construction projects from the first quarter of 2027 to the end of 2030.

The contract was for a new-built A-Class vessel featuring a hybrid design that allows it to transport and install both foundations and turbines.

Cadeler says its A-Class vessels are designed to transport up to six XXL monopile foundations per round trip. They can be rapidly converted from foundation installation vessels to turbine installation vessels, it says.

The vessels can transport and install seven complete 15MW turbine sets per load or five turbines of 20MW or more.

Orsted pulled out of a Contract for Difference for its massive Hornsea 4 project in the UK North Sea in May, citing rising supply chain costs and a change in strategy under CEO Rasmus Errboe following his appointment in January.
An executive at Japanese-owned Hitachi Energy, which had been due to supply the project with power equipment, recounted on a panel at the Global Offshore Wind summit last month how the supplier had been burned by Orsted’s pullout.
(Copyright)

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Published 2 July 2025, 10:47Updated 2 July 2025, 10:47
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