Ørsted A/S to Divest 50 Per Cent Stake in Its Taiwanese Offshore Wind Farm

December 29, 2020 11:24 PM AEDT | By Kunal Sawhney

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Ørsted A/S to Divest 50 Per Cent Stake in Its Taiwanese Offshore Wind Farm

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Summary

Danish firm Ørsted A/S has decided to sell 50 per cent stake in its 605MW Greater Changhua 1 offshore wind farm in Taiwan to a group led by Caisse de Depot et Placement du Québec.

The deal, which is valued at about 75 billion Taiwanese dollars ($2.66 billion), will see the Danish firm construct the wind farm under a full-scope EPC contract.

The payment will be made between 2021 and 2022, and CDPQ will be the major stakeholder.

Denmark-based power company Ørsted A/S has decided to sell a 50 per cent stake in its 605MW Greater Changhua 1 offshore wind farm in Taiwan, to a group consisting of global investor Caisse de Depot et Placement du Québec (CDPQ) and private equity fund Cathay PE, where the CDPQ will have the majority stake.

The deal, which is valued at about 75 billion Taiwanese dollars ($2.66 billion), will see the Danish firm construct Greater Changhua 1 farm under a full-scope EPC contract. It will also deliver long-term businesses and maintenance facilities from its O&M centre at the Port of Taichung. The payment will be made between 2021 and 2022.

The deal constitutes the acquisition of 50 per cent stake in the wind farm and the commitment from its partners to provide 50 per cent of the costs under the EPC contract. The wind farm will incorporate both the production and distribution units.

However, the investors’ stake in Greater Changhua 1 will be financed through a mix of equity and senior long-term debt facilities from 15 global and Taiwanese banks and two Taiwanese life insurance firms. Also, there will be five export credit organisations offering loans and assurances.

Greater Changhua 1 is part of the 900MW Greater Changhua 1 & 2a offshore wind farm, which Ørsted A/S anticipates to finalise in 2022. The deal requires a regulatory nod from the Taiwanese government authorities.

Commenting on the transaction, Martin Neubert, the offshore executive VP and CEO at Ørsted A/S, said the company is happy to welcome its long-term association partners Cathay PE and CDPQ in the project. He said it is exciting to see the institutional investors playing an active role in the shift to renewable energy and low-production economies.

He added that the deal also highlights the company’s achievement in successfully using its partnership farm-down prototype in Asia-Pacific for the first time.

Meanwhile, Emmanuel Jaclot, head of the infrastructure at CDPQ, said this deal would enable the firm to expand its business operations in Asia. Taiwan is an attractive market for the company.

He added that his company is happy that it will support the Greater Changhua 1 in association with Ørsted A/S and Cathay PE. This will provide clean power to more than 650,000 homes in Taiwan and will help the firm in its transition towards a low-carbon economy.

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