HOPES of further local jobs in the offshore windfarm sector have today suffered a setback.
Danish company Ørsted today announced that it is discontinuing its Hornsea 4 offshore wind project whose 180 turbines would probably have been serviced from its Grimsby dockside hub.
It has attributed its pull-out to ever-increasing supply chain costs, high interest rates and construction risks.
Says its chief executive Rasmus Errboe: "We remain fully committed to being an important partner to the UK government to help them achieve their ambitious target for offshore wind build-out and appreciate the work they’ve done to deliver a clear framework to support offshore wind.
"However, our capital allocation is based on a strict and value-focused approach, and after careful consideration, we’ve decided to discontinue the development of the Hornsea 4 project in its current form."
He continues: "We have been maturing the project over the past nine months and have been working relentlessly with stakeholders and suppliers to manage the different project risks for a project of this scale.
"Throughout the development phase, we have been diligent in our approach to capital commitment to our suppliers, and our committed capital is well below our threshold.
"The adverse macroeconomic developments, continued supply chain challenges and increased execution, market and operational risks have eroded the value creation."
Ørsted will take a huge financial hit - upwards of £500-million according to some estimates - as a result of today's decision.
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