Ørsted welcomes UK move to aid strained offshore wind industry — EnergyWatch

Tax benefits could be on the way for Ørsted in the UK, where the government plans to reduce taxes for companies that help promote green energy.

Ørsted declines to comment directly on what the plans could mean for its specific projects in the UK, including Hornsea 3, but the Danish wind farm developer welcomes initiatives that could help to send more funds towards a challenged offshore wind industry.

”There are measures in the government’s announcement that demonstrate an intention to create a more positive investment environment and support future growth in the UK offshore wind industry. We look forward to seeing further details and will continue to contribute to the government’s work to realize the full potential of the industry and underpin the UK’s global leadership,” says Duncan Clark, head of Ørsted in the UK and Ireland, in a written response to MarketWire.

UK Chancellor of the Exchequer Jeremy Hunt announced plans on Wednesday for permanent tax breaks for companies that help support the country’s shift to cleaner energy sources.

It involves capital allowances on investments, which are a form of tax relief designed to ease upfront costs, Bloomberg News reports.

According to the news agency, this means that companies can reduce their taxes by up to 25 pence for every pound they spend on factories and machinery.

Ørsted is under pressure to make its final investment decision on the 2.8GW Hornsea 3 wind project off the coast of Norfolk, but work is ongoing.

”We continue to develop Hornsea 3 and are working towards an investment decision later this year. We welcome any action that helps to make the UK a more attractive investment environment at a time when the offshore wind industry is challenged,” writes Clark.

At the same time, Ørsted is working to strengthen its balance sheet after huge writedowns on US projects and a huge loss in the third quarter.

”Making the measure permanent now should encourage such projects to continue,” the Association for Renewable Energy and Clean Technology wrote in an email comment, according to Bloomberg News on Wednesday.