The Low Carbon Contracts Company has terminated the contract for difference for Hexicon’s proposed TwinHub floating offshore wind array off the coast of Cornwall.

Hexicon secured the CfD in Allocation Round 4 in 2022 for the 32 MW project. The termination marks a setback for the proposed floating wind development in the Celtic Sea.

A spokesperson for the Department for Energy Security and Net Zero said the government was disappointed that the TwinHub contract had been terminated. The spokesperson added that the Low Carbon Contracts Company manages contracts with developers independently of the government and decides whether a generator has met its contractual obligations.

The department also said the government continues to support floating offshore wind and described the UK as having the largest project pipeline in the sector globally.

Earlier this year, Hexicon recorded an impairment of almost €11m linked to the CfD-backed TwinHub floating offshore wind project.