DONG Energy to build 1.4GW Hornsea Project Two windfarm in UK


Denmark-based DONG Energy has secured a contract to build the 1.4GW Hornsea Project Two offshore windfarm 89km off the Yorkshire coast in England, UK. 

The contract has been awarded at the latest round of competitive auction for renewable technologies, announced by the UK Government. 

DONG Energy noted that the strike price for power it will supply from the project for 15 years was set at £57.50/MWh, which is 50% lower than the previous round of auction held two years ago.

The price has been set through the UK Government’s contracts-for-difference (CfD) system, which has selected 11 new energy projects in its latest lot of auction.

DONG Energy Wind Power executive vice-president and CEO Samuel Leupold said: "We have always promoted size as a key driver for cost.

"The low strike price demonstrates the cost saving potential of developer-built offshore grid connections."

"The ideal size of an offshore windfarm is 800MW-1,500MW, and therefore it is natural that Hornsea Project Two will deliver record-low costs to society.

“At the same time, the low strike price demonstrates the cost saving potential of developer-built offshore grid connections, which in the UK is included in the project scope.”

Set to be operational by 2022, Hornsea Project Two will become the largest offshore windfarm in the world, beating DONG Energy’s under development 1.2GW Hornsea Project One farm.

Following completion, the facility will be able to generate enough electricity to power over 1.3 million homes in the UK.

Hornsea Project Two is also expected to contribute to DONG Energy’s goal of reaching a total offshore wind capacity of 11GW-12GW by 2025.

With an operational life of 25 years, the project is expected to support up to 2,000 jobs during construction.