Matthias Bausenwein, President of Ørsted Asia-Pacific, says, “Bringing long-term infrastructure investors and Taiwanese banks into Greater Changhua 1 is another milestone for the Taiwanese market, underlining its pioneering role in the Asia-Pacific region. While bringing in partners, Ørsted remains fully committed to constructing and operating the project during its lifetime.”
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.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, says, “Working alongside our long-term partner, Ørsted, and experienced local investor, Cathay PE, we are proud to support the Greater Changhua 1 Offshore Wind Farm project, which will supply clean power to over 650,000 Taiwanese families.”
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.
Jeff Chang, Chairman, Cathay PE, says, “This landmark transaction represents an important milestone in Taiwan’s energy transition towards a low-carbon future and fits perfectly with Cathay PE’s investment mandate to invest in high quality energy infrastructure projects alongside world class partners.”
The divestment is subject to regulatory approval from the Taiwanese authorities.
The information provided in this announcement does not change Ørsted’s previous financial guidance for the 2020 financial year or the announced expected investment level for 2020.
