Orsted has revealed that Cathay Life Insurance and Cathay Wind Power Holdings will acquire a 50 percent stake in its 583 MW Greater Changhua 4 offshore wind farm in Taiwan for approximately DKK 11.6 billion.
Following the deal, Orsted will retain a 50 percent stake in the project, which is part of the larger 920 MW Greater Changhua offshore wind farm cluster, which also includes the Greater Changhua 2b site.
The sale’s total price comprises both the acquisition of the 50 percent ownership share and the partners’ commitment to fund 50 percent of the payments under the Engineering, Procurement, and Construction (EPC) contract. Orsted will oversee the construction of the wind farm and provide ongoing operations and maintenance (O&M) services through its hub at the Port of Taichung.
Cathay Life Insurance, a subsidiary of Cathay Financial Holdings, is already an investor in Orsted’s Greater Changhua 1 Offshore Wind Farm, marking its largest investment in an offshore wind farm. The deal is backed by financing from international and local banks, along with support from six export credit agencies (ECAs), including Credendo, EIFO, EFA, KSURE, NCGA, and UKEF.
Mejnert Kristensen, CEO of Orsted’s Region APAC, said: “This landmark investment by Cathay Life, the largest made by a Taiwan life insurer in an offshore wind farm, reflects growing global interest in renewable energy.”
The Greater Changhua 4 and 2b projects are being developed alongside the 900 MW Greater Changhua 1 and 2a, which are already operational. The combined 1.82 GW Greater Changhua offshore wind cluster will be capable of powering nearly two million Taiwanese households, reducing carbon dioxide emissions by an estimated 3.5 million tonnes annually.
The 20-year fixed-price corporate power purchase agreement with Taiwan-based semiconductor company TSMC covers the combined 920 MW capacity of Greater Changhua 2b and 4, marking a significant step in Taiwan’s offshore wind energy growth.