Orsted still working to make numbers add up at Hornsea 3 UK offshore wind mega-project: CEO
Danish giant expects FID this year at North Sea array as Mads Nipper flags synergies and potential offtake options
Orsted CEO Mads Nipper said the offshore wind giant still expects to take a final investment decision (FID) this year on its Hornsea 3 North Sea mega-project amid turbulence in the UK offshore wind sector.
Nipper said Orsted already has a major presence on the east of England coast unlocking potential “significant synergies on cost” and added: “We’re working on offtake opportunities so part of that production can be sold at prices that help this case”.
Talks with suppliers are still ongoing to finalise contracts “but we still expect to make FID this year”, he said.
More widely Nipper said renewable power prices need to increase to reflect the “new realities” of the market, but even so could still be “highly competitive” with fossil fuel alternatives.
He stressed that centralised government auctions were not the only route to market.
The Orsted chief claimed the cost could only be borne by two sources – power billpayers or an already hard-pressed supply chain.
“The point about the lack of profitability of the supply chain is unfortunately not new and It doesn’t seem to be really going away,” Nipper said when asked about latest losses at wind giants such as Siemens Gamesa and Vestas.
Nipper said the company is talking to its suppliers and has “no indication of challenges or delays from our OEM partners”.
The Inflation Reduction Act had been “absolutely critical” in ensuring viability of its US portfolio, said Nipper, along with securing the full value of tax credits from its flagship New Jersey project. The company is also seeking to renegotiate terms of its Sunrise Wind project that is due to supply New York.
(Copyright)