Ørsted, BP reach agreement to progress Hornsea 4 and Endurance CCUS project

A spokesperson for Ørsted told OWJ, “We are pleased to confirm we have now reached a commercial agreement that will allow both Hornsea 4 and the Endurance project to move forward.

“We have worked constructively with BP, The Crown Estate and other stakeholders for over two years to find a pragmatic solution that will secure the future of both projects.

“Now that an agreement has been reached, we await the determination from the Secretary of State on planning consent which is expected on 12 July 2023.

“This bespoke way forward is good news for both projects,” said Ørsted, “however it remains clear that a long-term solution to co-location needs to be found to safeguard future offshore projects.

“The UK government has sent a clear message on the importance of offshore wind in the UK’s transition to green energy. If we are to meet the UK’s ambitions for 2030 and beyond, it is vital offshore wind projects are deployed sensitively, sustainably and without delay.”

Ørsted acquired the rights to develop the Hornsea zone in the North Sea from SMart Wind Ltd, who were originally awarded the zone in The Crown Estate Round 3 bid process. 

To date, Hornsea 1 and Hornsea 2 are in operation, and Ørsted recently confirmed plans to push ahead with Hornsea 3, despite concerns about the impact of inflation on the project and others like it, and the level of support for future offshore wind projects that is being provided by the UK government.

A dispute arose over the offshore wind project when Ørsted told the Planning Inspectorate that BP was trying to block a significant amount of offshore wind capacity in Hornsea Project 4. 

Ørsted said BP was ‘preventing access’ to an area of seabed that overlaps with the Endurance CCUS project. The offshore wind developer said the conflict with the CCUS project could have made Hornsea Project 4 less commercially competitive.