Ørsted has signed agreements with a consortium comprising global institutional investor Caisse de dépôt et placement du Québec (CDPQ), and Taiwanese private equity fund Cathay PE, who will be acquiring a total of 50 % ownership share of Ørsted’s 605 MW Greater Changhua 1 Offshore Wind Farm. CDPQ will be the majority owner among the two new partners.
The Greater Changhua 1 site is part of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farm, which Ørsted is currently constructing and expects to finalize in 2022.
As part of the agreement, Ørsted will construct the Greater Changhua 1 Offshore Wind Farm under a full-scope EPC contract. Ørsted will also provide long-term operations and maintenance (O&M) services from its O&M base at the Port of Taichung.
Martin Neubert, Executive Vice President and CEO of Ørsted Offshore, says: “I’m delighted to welcome our long-term partner CDPQ and Cathay PE in Greater Changhua 1. It’s encouraging to once again see institutional investors playing an important role in the transition to renewable energy and low-emission economies. Today’s announcement also marks a milestone in successfully applying our partnership farm-down model in Asia-Pacific for the first time.”
The total sales price for the Greater Changhua 1 Offshore Wind Farm comprises the acquisition of a 50 % ownership share and the commitment from the partners to fund 50 % of the payments under the EPC contract for the wind farm which includes both the generation and transmission assets. The total value of the transaction is approximately TWD 75 billion (approx. DKK 16 billion) which is to be paid during 2021 and 2022.
The investors’ 50 % stake in Greater Changhua 1 will be funded through a combination of equity and senior long-term debt facilities from 15 international and Taiwanese banks and 2 Taiwanese life insurance companies as well as 5 export credit agencies providing lending and guarantees.
Facts about Ørsted’s offshore wind projects in Taiwan
• The Greater Changhua 1 site accounts for 605 MW of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farm which Ørsted has started constructing and expects to complete in 2022.
• With a total capacity of 900 MW, Greater Changhua 1 & 2a will be able to supply around 1 million Taiwanese households with green power.
• Greater Changhua 1 & 2a will be located 35-60 kilometers off the coast of Changhua County.
• In June 2018, Ørsted was awarded the right to build another 920 MW offshore wind in Taiwan at its Greater Changhua 2b & 4 sites. The Greater Changhua 2b & 4 projects are to be built in 2025, subject to grid availability and Ørsted taking final investment decision on the projects in 2023.
• Ørsted is also the co-owner of Taiwan’s first commercial-scale offshore wind farm, Formosa 1, which was extended from a capacity of 8 MW to 128 MW in 2019.
(Source: Orsted)