Ørsted, the Danish renewable energy giant, has reportedly asked for more financial help from the UK government to develop the Hornsea 3 wind farm project.
According to the reports, Ørsted is seeking more attractive subsidies for the huge project, which would see 231 turbines installed off the coasts of Norfolk and Lincolnshire.
Originally, Ørsted agreed to fixed prices for electricity produced by Hornsea 3 of £37.35 per megawatt hour, but building costs have since soared due to the rise in inflation recently, potentially tipping the project deep into the red.
A spokesman for Ørsted told the Telegraph: “There was an ongoing dialogue with the UK government.”
Ørsted is already under pressure due to huge losses on its US windfarm development programme, with two of its most senior managers, chief operating officer Richard Hunter, and CFO Daniel Lerup, leaving the firm yesterday as a result of the problems.
The UK government is preparing for a new auction of offshore wind capacity after the last round received no offers at a price of £44 per MWh.
Reports have suggested the government will raise the fixed price on offer to above £70 in this new auction to attract sufficient bids.