UKEF Backs 1 GW Hai Long Offshore Wind Project with GBP 380 Million

Business & Finance

November 9, 2023, by Adnan Memija

UK Export Finance (UKEF), the UK Government’s export credit agency, has guaranteed GBP 380 million (approximately EUR 436 million) in financing for the 1 GW Hai Long offshore wind project in Taiwan.

The contribution is said to support a project finance package of over GBP 3 billion issued by more than 15 lenders to the Hai Long offshore wind project, which is being developed by Mitsui & Co., and Northland Power.

UKEF was one of seven export credit agencies that guaranteed this financing.

The agency is supporting the Hai Long project on the condition that it buys from the UK, creating over GBP 130 million in confirmed UK manufacturing and service contracts, according to UKEF.

“With the recent OECD Arrangement modernisation increasing the range of support which we can offer for climate-friendly projects, we can expect to see and support more multi-agency transactions like this in the future that will benefit British businesses,” said Tim Reid, CEO of UK Export Finance.

This is UKEF’s fourth deal supporting an offshore wind project in Taiwan and brings the agency’s total commitment to clean energy projects in the Asia Pacific region to over GBP 1.2 billion.

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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.

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.