The 583 MW Greater Changhua 4 is part of the 920 MW offshore wind project Greater Changhua 2b and 4, which is currently under construction in Taiwan and expected to be completed by the end of next year. Ørsted retains full ownership in the Greater Changhua 2b offshore wind farm.
The developer selected Cathay Life Insurance as the preferred bidder for co-ownership of Greater Changhua 4 in October 2023, after a competitive divestment process. Ørsted then signed an exclusivity agreement with the insurance company.
The total sales price, which is to be paid in 2024 and 2025, comprises the acquisition of the 50 per cent ownership share and the commitment from the partners to fund 50 per cent of the payments under the EPC contract for the wind farm. All regulatory approvals have been obtained, and the closing of the transaction is expected before the end of the year, Ørsted said on 11 December.
As part of the agreement, Ørsted, which continues to own the remaining half of the ownership stake in the wind farm, will construct Greater Changhua 4 under a full-scope EPC contract and will also provide long-term operations and maintenance (O&M) services from its O&M hub at the Port of Taichung.
“This landmark investment by Cathay Life, the largest made by a Taiwan life insurer in an offshore wind farm, is backed by international and local banks as well as foreign and local export credit agencies. The transaction not only underlines their confidence in Ørsted’s track record in building and operating offshore wind farms but also sets a new green investment paradigm in Taiwan”, said Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Ørsted.
The financing package, structured and led by Ørsted, will be supported by guarantees from six export credit agencies (ECAs): Credendo, the Export and Investment Fund of Denmark (EIFO), Export Finance Australia (EFA), Korea Trade Insurance Corporation (KSURE), National Credit Guarantee Administration (NCGA), and UK Export Finance (UKEF). This is the first time that the government-run NCGA has guaranteed offshore wind financing, according to Ørsted.
Greater Changhua 2b and 4 are currently under construction some 35-60 kilometres off the coast of Changhua County. The total 920 MW capacity of Greater Changhua 2b and 4 is covered by a 20-year fixed-price corporate power purchase agreement (CPPA) with the Taiwan-based semiconductor company TSMC.
The new offshore wind farms are located next to the 900 MW Greater Changhua 1 and 2a, which are in full operation. Cathay Financial Holdings, the parent company of Cathay Life Insurance, is also an investor in Ørsted’s Greater Changhua 1 offshore wind farm, through its Cathay Private Equity affiliate.
