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Orsted 2 Offshore Windfarms Ruled Taxable in UK

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Orsted's Walney Extension and Hornsea 1 offshore windfarms will be taxable in the UK, where the projects are located, instead of Denmark, where the company is based, following an advisory commission's final opinion on Friday.

The windfarms will be subject to the UK taxing rights over the project lifetime, as they continue to generate power and revenue.

"Orsted is satisfied with the outcome, as it is consistent with our understanding of international tax regulations and their application to the offshore wind industry," the company said.

In 2015, Orsted asked the Danish Tax Agency and the UK HM Revenue & Customs for a clarification on the matter to avoid double taxation. The case was referred to the advisory commission in 2023.

The company will further consult with DTA regarding its other projects, which it expects to follow the same legal principles as those applied to the two windfarms in the UK.

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Commodities

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Commodities

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Commodities

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