Mitsui signs deal for 20% of 1-GW offshore wind project in Taiwan

Offshore wind park. Author: Tim Collins. License: Creative Commons, Attribution 2.0 Generic.

August 6 (Renewables Now) - Japanese trader Mitsui & Co Ltd (TYO:8031) said on Thursday it has taken a 20% stake in the 1,044-MW Hai Long Offshore Wind development in the Taiwan Strait by buying into its co-owner Yushan Energy Taiwan Co.

The Japanese trading house has entered into a definitive agreement to buy 50% of Singapore-based Yushan Energy’s Taiwanese unit. The latter is the owner of a 40% interest in the offshore wind project, while the controlling stake is held by Canada-based Northland Power Inc (TSE:NPI).

The 1,044-MW offshore complex will be located 30 km to 50 km off the Taiwanese coast and is planned to be brought live by 2025. A final investment decision is expected to be taken after 2021.

The electricity from the huge wind complex will be sold to Taiwan Power Co under a 20-year contract.

Taiwan’s goal is to lift the share of its renewables generation to 20% by 2025. In line with that goal, it awarded grid capacity for several offshore wind projects and also held a tender under the country's offshore wind auction programme in the first half of 2018. Northland Power and Yushan Energy got 300 MW in the April allocation process and won an additional 744 MW for the Hai Long 2 and Hai Long 3 in the auction.

Yushan Energy is a subsidiary of Singapore’s Enterprize Energy Group.

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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