Ørsted A/S said it has received a final opinion from an advisory commission convened under the EU Arbitration Convention regarding the taxation of its Walney Extension and Hornsea 1 offshore wind farms.
The dispute traces back to 2015, when Ørsted sought clarification from both the Danish Tax Agency and UK HM Revenue & Customs (HMRC) on taxation rights between the two countries to avoid double taxation. When the agencies failed to reach an agreement, the matter was referred to the advisory commission in 2023.
In the opinion, dated September 10, 2026, the commission concluded that both offshore wind farms serve a genuine legal and economic purpose. The ruling determined that the projects are primarily taxable in the UK over their lifetime as they generate power and revenue.
Financially, the opinion results in a minor upward adjustment to Ørsted's overall tax position in Denmark, along with related interest charges. The company stated the adjustment is fully contained within its existing provisions for uncertain tax positions, and that any tax charge incurred in Denmark will be largely offset by tax reductions in the UK over time.
Following the ruling, Ørsted plans to engage with the Danish Tax Agency to resolve similar issues concerning other projects that received comparable administrative decisions or draft assessments, expecting those cases to follow the same legal principles. The company will also discuss the opinion's application with HMRC.
