Plans for a massive wind farm project off the Norfolk coast have been dramatically halted in a major blow for the county’s burgeoning energy industry.

Swedish company Vattenfall announced that it had halted plans for its Norfolk Boreas project.

The company said costs for the scheme had soared by 40pc due to inflation and it was pausing the project. The massive wind farm was given the government go-ahead in 2021 and major work is due to commence this year.

Vattenfall also said it would examine the best way forward for the entire Norfolk zone which also includes the Vanguard East and West projects.

Photo by Nicholas Doherty

Chief executive Anna Borg said: “Offshore wind is essential for affordable, secure and clean electricity, and it is a key element of Vattenfall’s strategy for fossil-free living.

“But conditions are extremely challenging across the whole industry right now, with a supply chain squeeze, increasing prices and cost of capital, and fiscal frameworks not reflecting current market realities.”

Claire Mack, Chief Executive at Scottish Renewables, said: “Today’s announcement from Vattenfall is a major wake up call for the UK Government who are failing to take account of the increased cost pressures and economic challenges facing offshore wind developers.”

A Department for Energy Security and Net Zero (DESNZ) spokesperson said the government recognises there are supply chain pressures for the sector globally and is “listening to companies’ concerns”.