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illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Orsted announced it will discontinue its Hornsea 4 offshore wind project in the U.K., citing rising supply-chain costs and higher interest rates
• The cancellation is expected to reduce 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) by between 3 billion and 3.5 billion Danish kroner ($457–$533 million)
🔭 The context: Hornsea 4 was intended to be one of the world’s largest offshore wind projects, further cementing Orsted’s leadership in the sector
• However, the global offshore wind industry has faced mounting challenges over the past year, including inflation, supply-chain disruptions, and surging financing costs
• Despite the setback, Orsted (see sustainability performance) reaffirmed its full-year EBITDA guidance, signaling confidence in its broader portfolio performance
🌍 Why it matters for the planet: Offshore wind is a cornerstone of global efforts to transition to clean energy and meet net-zero targets
• Project cancellations like Hornsea 4 highlight the growing economic risks facing renewable infrastructure, threatening momentum at a critical time for climate action
• It underscores the need for policy adjustments, financial innovation, and stronger supply chains to stabilize the renewable sector's growth
⏭️ What's next: Orsted will now focus on other projects within its portfolio, while policymakers and investors are likely to scrutinize offshore wind financing structures more closely
• The setback may also prompt broader calls for regulatory reforms to support renewable developers against macroeconomic pressures
• Watch for updated guidance in Orsted’s mid-year earnings and potential impacts on upcoming offshore wind auctions
💬 One quote: "Rising supply-chain costs and higher interest rates were among the adverse developments that prompted [Orsted's] decision," the company stated
📈 One stat: Orsted expects the project halt to cost between 3.5 billion and 4.5 billion Danish kroner ($533–$686 million), significantly impacting its 2025 earnings
See on illuminem's Data Hub™ the sustainability performance of Orsted and its peers, including Iberdrola, and Vestas
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