LS Cable & System has signed a subsea cable agreement with Ørsted, the world’s leading offshore wind developer headquartered in Denmark, for Greater Changhua 2b and 4 offshore wind projects in Taiwan.
The contract announcement follows Ørsted’s final investment decision, taken in March 2023. The wind farms are now under construction and are set to be some of the largest offshore wind projects in Asia Pacific.
The Greater Changhua 2b and 4 offshore wind farms will comprise around 65 wind turbines with an individual capacity of 14 MW, installed some 35-60 kilometres off the Changhua coast.
In 2018, Ørsted secured 920 MW of grid capacity for the offshore wind farms in Taiwan’s first competitive price-based auction with no mandatory local content requirements. Two years later, the developer signed a corporate power purchase agreement (CPPA) with Taiwan Semiconductor Manufacturing Company Limited (TSMC) for the offtake of the full production from Changhua 2b and 4.
When it comes to LS Cable & System, the company has won the supplier rights for high-voltage subsea cables for all eight Taiwanese projects of the country’s Phase 1 offshore wind farm construction projects.
The total amount of orders has reached approximately 1 trillion won (about EUR 701 million) since 2019, the company said.
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Taiwan is planning to complete the construction of offshore wind farms with a total output of 5.5 GW through the first phase of the project by 2025 and will build additional offshore wind farms for an additional output of 15 GW by 2035.
LS Cable & System recently acquired shares in the subsea cable construction company KT Submarine which they said could improve the firm’s construction capabilities.
“We expect additional orders to be placed from Taiwan and estimate that the submarine cable market will be worth around 3 trillion won. If we cooperate with KT Submarine to expand into the construction business, we expect our business to grow even more in size”, said LS Cable & System spokesperson.
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