TAIPEI (CNA) — Formosa 2, an offshore wind power development project has secured a massive loan of more than NT$62 billion (US$2.03 billion), paving the way for the start of construction of a wind farm located off the west coast of Taiwan.
In a statement, Formosa 2 said Tuesday that the plan has secured the NT$62.4-billion loan from a financing consortium. Construction is scheduled to start soon and is expected to be completed in 2020.
Macquarie Capital of Australia has a 75 percent stake in the Formosa 2 project, with Taiwan-based Swancor Renewable Energy holding the remaining 25 percent.
Formosa 2 said the financing consortium is comprised of 14 international banks and six Taiwanese financial institutions, with the Taiwanese participants accounting for about 30 percent of the total lending for the project.
The 12 foreign banks in the financing consortium are ANZ Banking Group, BNP Paribas, Commerzbank, Credit Agricole Corporate and Investment Bank, DBS Bank, HSBC, ING Bank, MUFG Bank, Natixis, OCBC, Siemens Bank, Société Générale, Standard Chartered Bank and Sumitomo Mitsui Banking Corp.
The six local financial institutions in the consortium are Taiwan Life Insurance, Entie Commercial Bank, E.SUN Commercial Bank, Taipei Fubon Commercial Bank, KGI Bank and Cathay United Bank.
In addition to the loan, Formosa 2 said it is also working with a group of Taiwanese and global contractors for the wind farm, including Fortune Electric, Jan De Nul, Siemens Gamesa and Taiwan Port Corp. for the construction of the project, which will comprise an onshore power system, underwater infrastructure, submarine cables, wind turbines and an assembly harbor.
“We are delighted to announce Formosa 2’s financial close. The project marks another important step in Taiwan’s renewable energy transition,” Mark Dooley, Global head of Macquarie’s Green Investment Group (GIG), said in the statement.
“Taiwan is fast becoming Asia’s foremost offshore wind market and we are proud to be playing a leading role in its offshore wind story,” Dooley said, adding that GIG is committed to helping Taiwan achieve its green energy ambitions.
Formosa 2, which is comprised of 47 8MW turbines, is located about four to 10 kilometers off the coast of Miaoli County in northern Taiwan, and once it becomes operational, is expected to provide power for 380,000 households per year.
Meanwhile, the installation of turbines has been completed for Formosa 1, another offshore wind power development project, initiated by Swancor, and it is possible that it will begin commercial operations by the end of this year
Robert Tsai (蔡朝陽), Chairman of Formosa 2, said he believes the progress of Formosa 1 has increased the confidence of the financing consortium, which encouraged it to extend the loan.
Formosa 1 is jointly owned by Danish energy developer firm Orsted, which holds a 35 percent stake, Japan-based power producer JERA Co., which has a 32.5 percent stake, Macquarie Capita, which owns a 25 percent stake, and Swancor, which owns the remaining 7 percent.
The Formosa 1 wind farm is located two to six kilometers off the coast of Miaoli County and has a total capacity of 128MW, which is expected to supply power to about 128,000 households per year.
By Pan Yi-ching and Frances Huang