Ørsted Brings on Co-Investors for its 605 MW Offshore Wind Farm in Taiwan

Ørsted has brought on CDPQ and Cathay PE, to co-invest in the 605 MW Greater Changhua 1 Offshore Wind Farm off the coast of Taiwan

Offshore wind major Ørsted has announced that it has signed an agreement with a consortium of world-leading investors, which consists of global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and established local investor Cathay PE, to co-invest in the 605 MW Greater Changhua 1 Offshore Wind Farm (Greater Changhua 1) in Taiwan. CDPQ and Cathay PE will jointly own 50 percent of the Greater Changhua 1 and Ørsted will retain a 50 percent share. The majority of the deal amount of approximately TWD 75 billion (approximately DKK 16 billion, or 3.4 billion CAD) will be used to pay for the EPC services for Greater Changhua 1.

The transaction is still subject to all customary and regulatory approvals by Taiwanese authorities.

Matthias Bausenwein, President of Ørsted Asia-Pacific, said “It has been our commitment to sharing our vast offshore wind financing experience with Taiwan’s financial community since the early stages of developing the Greater Changhua projects. We are glad to successfully achieve this important milestone by bringing our reliable and experienced partner CDPQ to Taiwan for the first time. We are equally thrilled to collaborate with our local partner Cathay PE, so that the Greater Changhua 1 will also be locally owned.”

This investment in Greater Changhua 1 is an important step for CDPQ‘s CAD 28-billion infrastructure portfolio. Indeed, this marks the first time that CDPQ is investing in an offshore wind farm in Asia Pacific, which reflects CDPQ’s confidence in Ørsted’s track record and adds the asset to the institutional investor’s long list of investments in solar and wind energy across the Americas, Europe and India.

Cyril Cabanes, Managing Director, Infrastructure, Asia Pacific, CDPQ, said “we are excited to take this first step in Taiwan’s renewable energy market, where we see many prospects and opportunities to collaborate with esteemed international and local partners who share our interest in developing high-quality infrastructure. We are also committed to further expand our renewables and energy footprint in the Asia Pacific, building upon this investment and other successful platforms that we have developed in India and Australia over the past few years.”

Ørsted further went on to add that the 50-50 partnership is the first of its kind in the APAC offshore wind sector and will help stimulate further opportunities in the Taiwanese market for offshore wind. The firm will retain 50 percent share of the Greater Changhua 1, which will be financed by its corporate balance sheet and will deliver the long-term operations and maintenance (O&M) services to the project. Greater Changhua 1 is part of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farms, which Ørsted is currently constructing and expects to be completed in 2022.

For the other 50 percent share of the project the two investors have secured a multi-tranche financing package from 15 international and local banks and two local life insurance companies: Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Oversea-Chinese Banking Corporation, Korea Development Bank, Siemens Bank, Société Générale, Standard Chartered and Sumitomo Mitsui Banking Corporation.