Ørsted terminates deal for Cadeler’s newbuild

Cadeler, a Denmark-based offshore wind farm installation company, has faced a significant setback as Ørsted, a fellow Danish utility, has terminated a long-term agreement for one of Cadeler’s newbuild vessels. The decision impacts the A-Class windfarm turbine installation vessel, originally earmarked for work at Ørsted’s Hornsea Three offshore wind farm in 2026 and later for the Hornsea Four project. Ørsted’s withdrawal from the Hornsea Four project has led to this abrupt end to their contract.

Impact on Cadeler’s Operations and Financial Outlook

The A-Class vessel was specifically designed to enhance efficiency in offshore wind projects. It can transport up to six XXL monopile foundations on each round trip and can be converted for wind turbine installations, capable of carrying and installing up to seven complete 15 MW turbine sets or five turbines exceeding 20 MW per load. This capability reduces the number of trips required for installation, making it a valuable asset for wind farm projects.

Re-evaluating Gas Turbine Engines for Future Maritime Propulsion

Despite the termination, Cadeler has indicated that it is entitled to compensation as per the agreement. The company is now exploring alternative projects with other clients, which could potentially mitigate the impact of this contract loss. Cadeler’s financial guidance for 2025 has been positively adjusted, forecasting revenues between €588 million and €628 million ($692 million and $739 million), a notable increase from the previous estimate of €485 million to €525 million ($571 million to $618 million).

This development underscores the volatile nature of the renewable energy sector, where project cancellations can significantly impact operational strategies and financial forecasts. Cadeler’s ability to pivot and secure new contracts will be crucial in maintaining its growth trajectory in the competitive offshore wind market.