(Bloomberg) -- Denmark’s Orsted A/S was the biggest winner in the latest UK auction to support new offshore wind farms.
The company took about 70% of the capacity awarded to traditional offshore wind farms, spread across two of its projects. It’s a crucial victory for Chief Executive Officer Mads Nipper as he works to improve the company’s fortunes after soaring costs and supply chain issues led to steep losses in recent years.
Shares rose as much as 3.9% in Copenhagen, the most in a month.
Orsted re-bid a 1.1-gigawatt portion of its Hornsea 3 wind farm, which had won a contract in 2022. The new contract will enable that part of the wind farm to sell power for a price 45% higher than the record-low bid secured previously. The company has already made a final investment decision on the project.
In addition, Orsted won an even bigger contract for its Hornsea 4 wind farm, under development off the east coast of England next to the other projects that share its name. The company will sell power for £58.87 per megawatt hour, plus an adjustment for inflation from 2012 prices.
The company expects to take a final investment decision on Hornsea 4 within 18 months and expects it will be completed before the end of 2030, according to a statement.
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