March 24 (Renewables Now) - Turbine maker MHI Vestas Offshore Wind has signed a contract with Taiwan’s Tien Li Offshore Wind Technology Co Ltd (TLC) to secure a supply of locally manufactured blades for its upcoming projects in Taiwanese waters.
As part of the agreement, which has its roots in a 2018 memorandum of understanding (MoU), Tien Li will build a blade manufacturing facility in Taichung Harbour, MHI Vestas said today.
MHI Vestas, a 50/50 joint venture between Japan's Mitsubishi Heavy Industries (TYO:7011) and Denmark's Vestas Wind Systems A/S (CPH:VWS), has been selected to be part of several offshore wind projects off the coast of Taiwan. It has secured firm contracts for the Changfang and Xidao projects, totalling 589 MW and developed by Copenhagen Infrastructure Partners (CIP). Additionally, CIP and its partner China Steel Corporation (TPE:2002) have named MHI Vestas as the preferred turbine supplier for the 300-MW Zhong Neng.
The sub-supplier contract with the Taiwanese blade manufacturer will pump up to TWD 4.38 billion (USD 145.2m/EUR 134.7m) into the local economy and lead to the creation of up to 2,900 jobs in 2020-2025, MHI Vestas stated.
“The finalisation of this contract is a significant milestone for the delivery of the comprehensive industrial plan we have developed for Taiwan. We are proud to reach this agreement with Tien Li to deliver a critical piece of our industrial plan, by ensuring that blades for our world-class V-174 turbines are made locally," said MHI Vestas Chief Supply Chain Officer Robert Borin.