The two developers signed a letter of intent to explore the opportunities around the 400MW site in September 2017.
The proposed 400MW project would have been located in the Hecate Strait off western Canada.
Ørsted said it wants to focus on its US portfolio, recently expanded with the acquisition of leading US developer Deepwater Wind.
"Since the formation of the partnership in September of 2017, progress has been made in the development of the project, but it is still in the development phase in a less mature market compared to others like the US east coast" said Thomas Brostrøm, president of Ørsted North America.
According to the Canadian firm, the project is "at an advanced stage of development with environmental approvals from the provincial and federal governments". It also has agreements in place with native First Nation communities and with some suppliers.
In 2013, Windpower Offshore reported a preferred supplier agreement was in place with Siemens (now Siemens Gamesa Renewable Energy) to provide turbines to the project.
Michael O'Connor, CEO of NaiKun, said the firm was in discussion regarding other potential partnerships for the site.
"We would like to thank Ørsted for assisting us in continuing to develop the project over the last 12 months and wish them well with their future endeavours.
"NaiKun is in discussion with interested alternate partners who are familiar with the wind resource and the development.
"With the industrial development on the north coast of British Columbia, and the growing demand and support for renewable energy, there are compelling reasons for the project to proceed," O'Connor said.