Published on January 25th, 2017 | by Joshua S Hill0
DONG Energy Invests In Taiwan’s First Offshore Wind Project
January 25th, 2017 by Joshua S Hill
Danish wind energy giant DONG Energy has agreed to acquire 35% ownership of Taiwan’s first offshore wind project, the Formosa I project, which will start out at 8 megawatts and have room to grow a further 120 megawatts.
DONG Energy announced on Wednesday that it had signed an agreement to acquire a 35% ownership interest in the project from local developer Swancor Renewable. If the transaction is approved, the new owners of the project would end up being DONG Energy (35%), Macquarie Capital (50%), and Swancor Industries (15%).
Interestingly, DONG Energy is not moving into a construction role, and will leave that up to Swancor Renewable, simply providing advisory services where necessary.
The Formosa I project comprises two separate phases — the first of which only saw two turbines installed back in October, 2016, for a total capacity of 8 megawatts (MW). However, Phase II is set to see a further 120 MW of capacity added capacity, set to be constructed during 2019.
“The agreement demonstrates our commitment to the Taiwanese market and to the government’s offshore wind plans,” said Samuel Leupold, Executive Vice President and CEO of DONG Energy Wind Power. “We look forward to engaging in Formosa I and accelerating Taiwan’s first commercial-scale offshore wind project. With Swancor’s local expertise, Macquarie’s strong track record in renewables, and DONG Energy’s 25 years of experience in offshore wind, we have formed a strong partnership to execute on this project.”
“As a pioneer of Taiwan offshore wind development, we try to integrate international experience with local expertise,” added Robert Tsai, Chairman and CEO of Swancor Group. “It’s our pleasure to have Macquarie and DONG Energy joining Formosa I. This remarkable partnership will help to push forward the delivery of this project.”
DONG Energy is also involved in its own projects — four separate offshore wind sites in the Changhua coastal region, which could have a total capacity of at least 2 gigawatts when they are completed, sometime between 2021 and 2024.
“Offshore wind will be a key component in Taiwan’s future energy mix, and Formosa I is an important milestone for a successful deployment of offshore wind in Taiwan,” explained Matthias Bausenwein, General Manager for DONG Energy Asia-Pacific. “We are happy to contribute to its realization and bring our experience as global market leader to the project. This project will enable DONG Energy to gain fast track development, construction and operational experience in a new market, which we will leverage for further activities in Asia.”