Japanese Companies Make First Offshore Wind Foray Abroad

Japan’s Mitsui O.S.K. Lines (MOL), Toho Gas, and Hokuriku Electric Power Company have agreed to acquire a 25 per cent stake in Formosa I International Investment from Macquarie’s Green Investment Group in order to participate in Taiwan’s offshore wind power business.

This will mark the first investment made into the offshore wind power generation space outside of Japan by these three companies.

Formosa I International Investment, through its wholly-owned subsidiary, Formosa I Wind Power, operates the 128 MW Formosa 1 wind farm located off the coast of Miaoli County.

Formosa 1 is the first utility-scale offshore wind farm in Taiwan and has been contracted to generate and sell electricity to Taiwan Power Company for 20-years based on the feed-in-tariff scheme in April 2017 for the 8 MW Phase 1, and December 2019 for the 120 MW Phase 2.

The acquisition is planned to be carried out through a special purpose company jointly established by the three companies in Taiwan, in which MOL, Toho, and Hokuriku will own 37.5 per cent, 37.5 per cent, and 25 per cent of the shares, respectively.

The three companies are in the process of filing for incorporation of the special purpose company, and the transaction is expected to complete after all the necessary procedures, including approvals from the Taiwanese authorities.

Formosa I Wind Power is currently owned by Ørsted (35 per cent), JERA (32.5 per cent), Macquarie Capital (25 per cent) and Swancor Holding (7.5 per cent).

Hokuriku Electric Power Company is a supplier of electricity mainly to Toyama Prefecture, Ishikawa Prefecture, Fukui Prefecture, and part of Gifu Prefecture in Japan. Toho Gas engages in the manufacture and sale of gas and other gas-related products. It is one of Japan’s leading gas companies.

MOL and Hokutaku Establish Offshore Wind Investment Partnership

MOL has also, together with Hokutaku, a wind turbine maintenance specialist, established the Hokutaku MOL Wind Energy Investment Limited Partnership (Hokutaku/MOL Wind Energy Fund) with the objective of investing in the offshore wind energy business.

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The Hokutaku/MOL Wind Fund aims at about JPN 10 billion-scale investment (EUR 79 million) in offshore wind energy projects.

”By combining Hokutaku’s network and operational expertise in the wind energy industry with MOL group’s know-hows across various social infrastructure business, including ocean shipping industry, both companies are committed and contributing to adding new values and developing the supply chains in offshore wind power generation industry, which is expected to become the main driver for de-carbonization in Japan,” MOL said in a statement.

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