Financial Close Reached for Taiwanese Offshore Wind Farm

Business & Finance

September 28, 2023, by Adnan Memija

The 1 GW Hai Long offshore wind project in Taiwan, being developed jointly by Northland Power and Mitsui & Co., has reached financial close for its 20-year TWD 117 billion (about EUR 3.4 billion) non-recourse green financing.

According to Northland Power, the TWD 117 billion debt amount at closing changed from the TWD 118 billion at signing financial agreements as a result of the final foreign exchange rates on closing.

The non-recourse green project financing will be provided by over 15 international and local lenders with support from multiple Export Credit Agencies (ECAs) including Export Development Canada (EDC), Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI), UK Export Finance (UKEF), Export Finance Australia (EFA), Export Finance Norway (Eksfin) and Credendo – Export Credit Agency of Belgium.

The 1,044 MW Hai Long development will comprise two offshore wind farms that will be developed in three stages, with Hai Long 2 split into two phases: the 300 MW Hai Long 2a and the 232 MW Hai Long 2b. Hai Long 3 will have an installed capacity of 512 MW.

Hai Long’s total cost is projected to be approximately CAD 9 billion (about EUR 6.3 billion).

The project is being developed about 45-70 kilometres off the Changhua coast in the Taiwan Straits. According to Northland Power, Hai Long has achieved several milestones, including in-water construction and fabrication activities, all environmental approvals, major permits, and construction contracts.

Planned to be fully commissioned in 2025, the Hai Long offshore wind project is expected to power 1.55 million households in Taiwan with its 73 Siemens Gamesa SG 14-222 DD wind turbines.