DONG Energy and Macquarie Capital have signed agreements to acquire a combined 85% ownership interest in the Taiwanese offshore wind project Formosa I from local developer Swancor Renewable.
Completion of the transactions is subject to a number of conditions precedent including approval from the EU and from the Investment Commission under Taiwan’s Ministry of Economic Affairs, DONG said.
If the deals are approved, the new owners of Formosa I will be Macquarie Capital (50%), DONG Energy (35%), and Swancor Industries (15%).
While DONG Energy will provide advisory services, Swancor Renewable will continue to lead the project through site development and construction. Macquarie Capital will also work with DONG Energy and Swancor Renewable to complete the development and construction of the project.
Formosa I comprises two phases. Phase I has a total capacity of 8MW and consists of two turbines that were installed in October 2016.
In Phase II, a further 120MW of capacity is planned to be constructed during 2019, subject to final investment decision.
Formosa I is located approximately 3 kilometres off the Coast of Miaoli County in North-West Taiwan.
“The agreement demonstrates our commitment to the Taiwanese market and to the government’s offshore wind plans,” Samuel Leupold, Executive Vice President and CEO of DONG Energy Wind Power, said.
”We look forward to engaging in Formosa I and to accelerating Taiwan’s first commercial-scale offshore wind project. With Swancor’s local expertise, Macquarie’s strong track record in renewables, and DONG Energy’s 25 years of experience in offshore wind, we have formed a strong partnership to execute on this project.”
Apart from its engagement in Formosa 1, DONG Energy is currently developing four offshore wind sites in the Changhua area from its office in Taipei. The four projects are expected to have a total capacity of at least 2GW and are due to start construction in 2021- 2024, subject to environmental impact assessment and final investment decision.
Matthias Bausenwein, General Manager for DONG Energy Asia-Pacific said: “Offshore wind will be a key component in Taiwan’s future energy mix, and Formosa 1 is an important milestone for a successful deployment of offshore wind in Taiwan. We’re happy to contribute to its realisation and bring our experience as global market leader to the project. This project will enable DONG Energy to gain fast-track development, construction and operational experience in a new market, which we will leverage for further activities in Asia.”