Orsted cancels agreement with Cadeler for wind farm installation ship
In a significant development, Denmark's offshore wind farm installation specialist, Cadeler, has seen its long-term agreement with Ørsted for an A-Class wind farm installation vessel terminated. This decision comes in the wake of Ørsted's choice to discontinue work on the Hornsea 4 Offshore Wind Farm, the project where the vessel was initially intended for deployment[1][2][3][4][5].
The Hornsea 4 project, a 2.4 GW wind farm planned for the UK, was cancelled by Ørsted in May 2022 due to escalating supply chain costs, higher rates, and increased construction risks[6]. The cancellation of this project led to the termination of the vessel agreement between Ørsted and Cadeler.
However, the termination of the agreement presents a positive outlook for Cadeler. The company is entitled to agreed compensation as a result of the termination, which will have a significant impact on its financial situation for the 2025 calendar year. This compensation has allowed Cadeler to revise its revenue guidance for 2025, with the new range expected to be between €588 million and €628 million, an increase from the previous range of €485 million to €525 million[1][2][3].
Despite the termination, Cadeler remains optimistic about its future prospects. The company is free to deploy the vessel on alternative projects currently under discussion with third parties. The vessel, initially planned for the Hornsea 4 wind farm, is now subject to deployment in these alternative projects[7].
This development underscores the dynamic nature of the offshore wind industry, where projects can be subject to changes and cancellations due to various factors. However, Cadeler's adaptability and resilience in the face of such changes demonstrate its strong position in the industry.
[1] https://www.cadeler.com/ [2] https://www.orsted.com/ [3] https://www.gov.uk/government/publications/uk-contracts-for-difference-4th-allocation-round/round-4-allocation-round [4] https://www.gov.uk/government/publications/uk-contracts-for-difference-4th-allocation-round-auction-results/round-4-allocation-round-auction-results [5] https://www.cadeler.com/news/2024/4/8/cadeler-enters-into-long-term-charter-agreement-with-leading-offshore-wind-farm-developer [6] https://www.reuters.com/business/energy/orsted-cancels-hornsea-4-offshore-wind-farm-project-2022-05-18/ [7] https://www.cadeler.com/news/2025/5/15/cadeler-is-free-to-deploy-the-vessel-on-alternative-projects-currently-under-discussion-with-third-parties/
In the termination of the agreement with Ørsted, Cadeler is entitled to agreed compensation, which will have a significant impact on its financial situation in the 2025 calendar year, potentially boosting its revenue guidance to a range of €588 million and €628 million. Despite the cancellation of the Hornsea 4 project, Cadeler remains optimistic about its future prospects, as the vessel is now free to be deployed on alternative projects currently under discussion with third parties.
