Energy firm Ørsted is pushing ahead with plans to create the world's largest offshore wind farm in the North Sea - a move that could bring 1,200 jobs to Grimsby.
The Danish multinational revealed its final investment decision on the 2.9GW capacity project, which is now expected to be complete towards the end of 2027. One running, Hornsea Three will create enough renewable electricity to power more than 3.3m UK homes.
A maintenance hub in Grimsby will support 1,200 jobs over the long term operation of the giant wind farm which will lie 160km off the Yorkshire coast. Ørsted says around 5,000 jobs will be created in the construction phase.
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The Copenhagen-based firm secured a UK Government contract for difference in July last year, giving it certainty of £37.35 per MWh in 2012 prices. It has a number of supplier contracts already in place, including with Siemens Gamesa for the supply of 14-MW turbines and more recently with South Korean firm SeAH Wind for its forthcoming Teesside factory to provide monopiles that will attach the turbines to the sea bed.
In a nod to cost pressures felt in the offshore wind industry - which caused Swedish rival Vattenfall to halt work on its Norfolk Boreas wind farm - Orsted said most of the capital expenditure on Hornsea Three had been contracted ahead of recent inflationary pressures.
Mads Nipper, group president and CEO of Ørsted, said: "By applying our world-leading capabilities within offshore wind innovation, engineering, operations, procurement, and financing, we’ve been able to mature the world’s largest offshore wind project and take final investment decision. 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.
"We look forward to constructing this landmark project, which will deliver massive amounts of green energy to UK households and businesses and will be a significant addition to the world’s largest offshore wind cluster.”
Duncan Clark, head of Ørsted UK & Ireland, said: "Hornsea 3 will be a cornerstone in achieving the UK government’s climate and clean energy targets while increasing energy independence and creating local jobs. Our decision to build Hornsea 3 is a vote of confidence in the UK market for offshore wind, as we continue to invest significantly in UK clean energy infrastructure and in the UK supply chain."
Hornsea Three will complete a trio of wind farms in the North Sea producing in excess of 5GW. The Hornsea Zone will also include a fourth phase with a capacity of 2.6GW, which received development consent order earlier this year.
