A consortium of Northland Power, Mitsui & Co. Ltd., and Yushan Energy has appointed K2 Management as Lender’s Technical, Environmental, and Social Advisor on Taiwan’s Hai Long offshore wind farm.
The contract’s scope will see K2 Management advise lenders on permitting and environmental, technical design, project participants, construction management and associated contracts, schedule and weather risk, O&M strategy and contracts, technical aspects of the financial model, and a review of risk management and contingency sizing.
“There is a great transformational opportunity for Taiwan to use offshore wind to help shape a stronger economic and environmental landscape as the Asia Pacific export hub in offshore wind and Hai Long aims to be the anchor project to that,” Hidehiro Nagata, Chief Financial and Administration Officer at Hai Long Offshore Wind, said.
“K2 Management brings a combination of international offshore technical expertise alongside local Taiwanese market knowledge to the Hai Long offshore project. We will look forward to collaborating throughout the financing process.”
The proposed 1,044 MW Hai Long offshore wind project, located 50 kilometres off the coast of Changhua county, will be developed in three stages, with construction expected to begin in 2023 and commissioning in 2025.
“All good projects begin with strong development, but the importance of a robust and technically sound financing process cannot be underestimated,” K2 Management’s Director of Due Diligence & Analysis, Will Sheard, said.
“We are thrilled to be appointed in this key role, bringing technical expertise to Hai Long and supporting the project through to financial close.”
Hai Long has three separate grid allocations – Hai Long 2a – 300 MW, Hai Long 2b – 232 MW, and Hai Long 3 – 512 MW.
The Hai Long 2a wind farm will feature Siemens Gamesa’s new SG 14-222 DD offshore wind turbine. The model is also being considered for Hai Long 2b and Hai Long 3.
The consortium has also secured a power purchase agreement (PPA) with Taipower for Hai Long 2a.
CSBC DEME Wind Engineering (CDWE) is the Balance of Plant (BOP) contractor for the project.