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Ørsted shot down as UK advances 2.85 GW of offshore wind farm extensions

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Ørsted shot down as UK advances 2.85 GW of offshore wind farm extensions

Plans by Ørsted A/S to expand one of the largest offshore wind farms in the U.K. appear dead in the water after the Danish utility failed to clear an environmental assessment, while seven other projects moved one step closer to growing their capacity.

The Danish utility's 573-MW Race Bank project was the only one of eight applications for offshore wind farm extensions that failed to clear a so-called Habitats Regulations Assessment, because it was found that the project could threaten a nearby conservation area, according to the Crown Estate, which manages leasing rights for the seabed in England, Wales and Northern Ireland.

Although the Crown Estate can pursue a derogation case to push through the project anyway, it decided against doing so because this could delay the other projects.

"As a first for the offshore wind sector, this would be a significant undertaking, in conjunction with a broad range of stakeholders," the Crown Estate said in a statement, adding that it would continue to work with Ørsted "to consider next steps."

Ørsted had sought to double the capacity of the existing wind farm, in which it owns a 50% stake, with 37.5% held by Macquarie Group Ltd. and 12.5% by Sumitomo Corp.

A spokesperson for Ørsted did not immediately return a request for comment, but the company told website Recharge that it is in discussions with the Crown Estate to explore options that would keep an expansion for Race Bank on the table.

All seven of the other extension projects, totaling 2.85 GW of new capacity, moved to the next stage and will now undergo project specific environmental assessments and surveys before seeking planning consent, according to the Crown Estate.

Norwegian oil major Equinor ASA owns two of the existing wind farms and German utility innogy SE holds stakes in three, with the rest in the hands of utilities E.ON SE, SSE PLC and Vattenfall AB, along with various partners.