Siemens Gamesa Awards First Local Taiwan Offshore Wind Supply Contracts
Spanish wind energy giant Siemens Gamesa Renewable Energy has this week announced its first local supply agreements for offshore wind projects in Taiwan, heralding the next key step in the evolution and growth of what is expected to be the world’s next big offshore wind energy hub.
As has been covered to some length already, Taiwan is shaping up to be the next global wind energy hot spot — alongside the East Coast of the United States — having awarded 5.4 gigawatts (GW) worth of capacity this year alone. The country only boasts a small demonstration project in operation — the 8 megawatt (MW) Formosa 1 Phase 1, which is already being expanded with the addition of a 120 MW Phase 2 that reached financial close earlier this year.
But alongside the development of the Formosa 1 project and the awarding of 5.4 GW worth of future capacity, offshore wind energy companies like MHI Vestas and Siemens Gamesa have been making huge strides to set up developmental and manufacturing bases in Taiwan. So far both companies have signed several Memorandums of Understanding (MoUs) with Taiwanese manufacturers and companies to set up manufacturing bases and supply chains necessary to develop the numerous projects that have so far been awarded.
Furthering the expansion of Taiwan’s nascent offshore wind industry is the announcement this week from Spanish wind energy giant Siemens Gamesa Renewable Energy announcing that it has awarded its first two local supply contracts for offshore wind projects in Taiwanese waters. Swancor will provide resin for turbine blades used at the Formosa 1 Phase 2 offshore wind project, while the newly-formed partnership between CS Wind and Chin Fong will supply towers made entirely in Taiwan for the Yunlin offshore wind project being developed by wpd.
“Signing our first firm purchase order for local turbine components in Taiwan is a watershed moment for Siemens Gamesa,” said Andreas Nauen, Siemens Gamesa’s Offshore CEO. “We’re proud to do so with our long-term partner and industry pioneer Swancor, moving the Taiwanese offshore wind supply chain forward together. We’re furthermore looking forward to expanding our collaboration with Swancor in making Taiwan an offshore wind center in Asia-Pacific.”
The contract signed with Swancor stems from many months of existing cooperation between the two companies alongside a long-term partnership — which involves the company as a minority investor and owner in the 120 MW Formosa 1 Phase 2 project.
“We are pleased to be selected by the world leader in offshore wind SGRE, a trusted partner of Swancor,” explained Robert Tsai, Chairman of Swancor. “We would like to express our gratitude to SGRE for assisting Swancor in becoming part of their global supply base, and eager to strengthening our cooperation, both in Taiwan and globally.”
The agreement with CS Wind and its new partner Chin Fong heralds even greater cooperation to come. CS Wind — a global wind turbine tower supplier for both the onshore and offshore wind industries — was already contracted to supply the towers for the Formosa 1 Phase 2 project, but has since partnered with one of Taiwan’s largest manufacturing companies, Chin Fong Machine Industrial, with expertise in mechanical power presses and metal forming technologies. The two companies will make use of the latter’s existing facilities at Taichung Harbour to deliver locally-built towers beginning in 2021.
“CS Wind is a strategic partner of SGRE globally, delivering wind turbine towers to numerous projects around the globe. We strongly believe in the combination of their specialist knowledge with Chin Fong’s skills and strong local connection in Taiwan. Together, they have a great location to serve most of the Taiwanese offshore projects, doing so at an attractive price level with a fast start of production. We will be well-prepared for the future local content requirements for towers when they become effective in 2021,” stated Niels Steenberg, Executive General Manager of Siemens Gamesa Offshore for Asia-Pacific.
“CS Wind has expanded aggressively to secure the pole position in the wind power tower industry,” said Seong-Gon Gim, Chairman of CS Wind. “We view this opportunity to capture a leading market share in Taiwan as key to becoming the global market leader together with our activities in the UK and Vietnam.”
“Chin Fong views this partnership as a great possibility as we look to expand our core business from the automotive industry to renewable energy,” added Dr. Eugene Chang, Chairman of Chin Fong. “We are proud to contribute to the Taiwan offshore industry as the leading wind power tower manufacturer, bringing jobs to Taichung Harbor. I am very pleased by the investment decision made by CS Wind and proactive approach of SGRE to materialize this local tower manufacturing facility.”
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