Ørsted has signed an agreement with Caisse de dépôt et placement du Québec (CDPQ), a global institutional investor, and Cathay PE to co-invest in the 605 MW Greater Changhua 1 Offshore Wind Farm. The transaction is still subject to all customary and regulatory approvals by Taiwanese authorities.
CDPQ and Cathay PE will jointly own 50% of the Greater Changhua 1 and Ørsted will retain a 50% share. The majority of the deal amount of approximately $2.65 billion will be used to pay for the EPC services for Greater Changhua 1.
“This transaction marks the evolution of our partnership model into Taiwan, leveraging our extensive track record of development, construction and operation of large offshore wind farms,” says Kunal Patel, vice president and head of partnerships and structured solutions at Ørsted. “With a long-term agenda in Taiwan, we remain committed to the Greater Changhua 1 project and will also reutilize the capital into further developing new offshore wind projects to assist Taiwan in achieving its energy transition goals.”
This investment in Greater Changhua 1 is an important step for CDPQ’s $21.79 billion infrastructure portfolio. 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.
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. Ørsted will retain 50% 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.
CDPQ and Cathay PE will acquire a 50% share of the Greater Changhua 1 via a multi-tranche financing package from 15 international and local banks and two local life insurance companies. The financing package, which was structured and led by Ørsted, will be partially supported by guarantees and/or loans from five international export credit agencies (ECAs).