Ørsted comfirms investment commitment to 120-MW wind project off Taiwan

Ørsted A/S (CPH:ORSTED) announced on Thursday it has taken a final investment decision on the 120-MW Formosa 1 Phase 2 wind project in Taiwanese waters and is awating the decision of its partners.

Formosa 1 is being developed by Swancor Renewable Energy Co, which owns a stake of 15% in the scheme. Its partners are Australia’s Macquarie Group Ltd (ASX:MQG), with a 50% stake, and Denmark's Ørsted, holding 35%. The three companies are expected to take a joint final investment decision on Formosa 1 Phase 2 next month.

Under a recent deal, Siemens Gamesa Renewable Energy SA (BME:SGRE) will supply 20 units of its SWT-6.0-154 wind turbines and install them on monopile foundations about 6 km (3.7 miles) off the west coast of the Miaoli district in the Taiwan Strait. They will be added to the scheme’s 8-MW first phase,which was commissioned in April 2017.

Turbine installation on Formosa 1 Phase 2 is planned to start in 2019, while commercial operations will be launched before 2020. Once completed, it will be the first commercial-scale offshore wind farm in Taiwan, according to Ørsted. It will be serviced by Siemens Gamesa over a period of 15 years.

The project has in place a power purchase agreement (PPA) with Taipower and the permitting process is on schedule, Ørsted noted, adding that all contracts related to the project are subject to the joint venture’s final investment decision and financial close.

A large portion of the funds needed for the project will be financed through non-recourse debt.

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