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Ørsted has agreed with Taiwan-based insurance company Cathay Life Insurance (CLI) and its affiliate Cathay Wind Power Holdings that Cathay Life will acquire a 50% stake in Ørsted’s Greater Changhua 4 offshore wind farm offshore Taiwan.
The transaction includes a 50% ownership share and a commitment to fund 50% of the engineering, procurement and construction (EPC) contract payments.
The remaining 50% of the wind farm will be retained by Ørsted.
All necessary regulatory approvals have been obtained, and the transaction is expected to close by the end of 2024. It is valued at DKr11.6bn ($1.6bn), with payments scheduled for 2024 and 2025.
The 583MW Greater Changhua 4 site is part of Ørsted’s 920MW offshore wind farms, Greater Changhua 2b and 4, which are currently under construction and are expected to be completed by the end of 2025.
The combined capacity of wind farms is secured by a 20-year fixed-price corporate power purchase agreement with Taiwan-based semiconductor company TSMC.
Ørsted will build the wind farm under a full-scope engineering, procurement and construction contract and provide long-term operations and maintenance services from its hub at the Port of Taichung.
Ørsted deputy CEO and chief commercial officer Rasmus Errboe said: “We’re pleased to apply our partnership model in Asia Pacific once again, and advance the development of offshore wind in the region with Cathay, with whom we have great collaboration experience.
“We’re satisfied with the transaction as it represents another important milestone in our partnership and divestment programme and ensures further progress towards our mid- and long-term targets.”
CLI, a subsidiary of Cathay Financial Holdings, is also an investor in Ørsted’s Greater Changhua 1 offshore wind farm through its Cathay Private Equity affiliate.
The financing package, structured and led by Ørsted, is supported by guarantees from six export credit agencies, including the National Credit Guarantee Administration (NCGA), marking its first offshore wind financing guarantee.
CLI president Andrew Liu stated: “We’re delighted to partner with Ørsted on the development of the Greater Changhua 4 offshore wind farm project. This investment underscores our dedication to supporting the government's renewable energy transition while simultaneously generating stable, long-term returns that align with the investment goals of the insurance sector.”
The Greater Changhua 2b and 4 offshore wind farms are located adjacent to the operational 900MW Greater Changhua 1 and 2a.
Collectively, the 1.82GW Greater Changhua offshore wind cluster can generate enough energy to power two million Taiwanese households, equating to a reduction of 3.5Mt of carbon dioxide annually.