The Anonymous Widower

Ørsted Greenlights 2.9 GW Hornsea 3 Offshore Wind Farm

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the sub-heading.

Ørsted has taken the final investment decision (FID) on what the company says is the world’s single largest offshore wind farm, the 2.9 GW Hornsea 3, which is expected to be completed around the end of 2027.

These are the two introductory paragraphs.

In July 2022, Ørsted was awarded a contract for difference (CfD) for Hornsea 3 at an inflation-indexed strike price of GBP 37.35 per MWh in 2012 prices.

The CfD framework permits a reduction of the awarded CfD capacity. The company said it will use this flexibility to submit a share of Hornsea 3’s capacity into the UK’s upcoming allocation round 6.

With all the work, that Ørsted have done to protect kittiwakes, which I wrote about in Kittiwake Compensation, the company seems to have been taking the development of this wind farm carefully and this statement from the wonderfully-named Mads Nipper, Group President and CEO of Ørsted indicates that the UK Government has been persuasive in times, that are not totally favourable to wind farm developers.

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.

But the article also has this paragraph.

According to Ørsted, most of Hornsea 3’s capital expenditure was contracted before recent inflationary pressures, securing competitive prices from the supply chain, adding that the larger wind turbines and the synergies with Hornsea 1 and 2 lead to lower operating costs.

It looks like Ørsted, may have taken advantage of Siemens well-publicised financial woes and got a good price for the over two hundred turbines.

This page on the Hitachi web site, describes their part in Hornsea 3, where this is said.

Hitachi Energy has supported Ørsted with the grid connection of Hornsea One and Hornsea Two, but Hornsea 3 will be the first phase to use HVDC application in the Hornsea cluster.

The overall HVDC system, including the offshore platform, is delivered in partnership with Aibel. Hitachi Energy will supply two HVDC Light® converter systems, while Aibel will deliver two HVDC offshore converter platforms. The platform is based on Hitachi Energy’s modular HVDC system including its advanced control and protection system, MACH™. As the HVDC offshore market grows and becomes more complex, Hitachi Energy will continue to develop solutions with its customers and partners to enable a more flexible offshore grid of the future.

Hitachi Energy is supplying four HVDC converter stations, which convert AC power to DC for transmission in the subsea cables, then reconvert it to AC for integration into the onshore grid. Two of the converter stations will be installed on offshore platforms and two at mainland grid connections.

Note.

1. Hitachi are pushing their electrical innovation hard.
2. Hitachi and Ørsted  have worked together on Hornsea 1 and 2.
3. What better place is there for Hitachi to test their new modular HVDC system, than on one of the world’s largest wind farms?
4. Hitachi appear to say, they like to develop with customers and partners.

It looks to me, that Ørsted may well have got new improved technology at an advantageous price.

This is the last paragraph of the article.

The Hornsea zone will also include the Hornsea 4 project, which could have a capacity of up to 2.6 GW. The wind farm received its development consent order from the UK government earlier in 2023 and is now eligible for forthcoming CfD allocation rounds.

So will Hornsea 4 be a slightly smaller version of Hornsea 3 using the same suppliers?

• There could be savings in the design and manufacturing of the electrical systems, foundations, sub-stations and turbines.
• Could for instance, Hitachi’s modular HVDC result in savings in converters and sub-stations, if the two wind farms shared infrastructure?
• I’m sure that Siemens, Hitachi and the other suppliers will be happy to just keep rolling.
• It would be an ideal follow-on.

It looks to me, that by using good design and management, and established suppliers, Ørsted  have managed to get the costs of Hornsea 3 and Hornsea 4 to a level, where the venture is profitable.

December 21, 2023 - Posted by AnonW | Design, Energy | Ørsted, Hitachi, Hornsea Wind Farm, Kittiwakes, Offshore Wind Power, Wind Power