Canada’s Northland Power and Mitsui & Co., part of Japan’s Mitsui Group, have made a Final Investment Decision (FID) for the 1,044 MW Hai Long offshore wind project in Taiwan.

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The FID is subject to various conditions precedent and project finance contracts expected to come into force within this year, said the partners.

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.

The total project cost is expected to be approximately JPY 960 billion (about EUR 6.08 billion), of which nearly JPY 540 billion (approx. EUR 3.4 billion) will be raised through project financing, in which export agencies including Japan Bank for International Cooperation, Nippon Export and Investment Insurance, and other financial institutions around the world will participate, according to the partners.

Last week, Northland Power revealed the signing of a TWD 118 billion (about EUR 3.4 billion) credit agreement providing the project with non-recourse debt funding.

Mitsui said the company’s investment, loan, and guarantee amount will be approximately JPY 260 billion (about EUR 1.6 billion).

Northland Power is currently in the process of selling a 49 per cent portion of its stake in the Hai Long offshore wind project to Gentari.

Located around 50 kilometres off the coast of Changhua County in water depths of between 35 and 55 metres, Hai Long is scheduled to be fully completed by the end of 2026.