Renewable energy company Ørsted announced the sale of a 50% stake in the Changua 1 offshore wind farm to institutional investor Caisse de dépôt et placement du Québec (CDPQ), and Taiwanese private equity fund Cathay PE, in a transaction valued at approximately $2.7 billion.
The 605 MW project is part of the 900 MW Greater Changhua 1 & 2a Offshore Wind Farm, currently under construction by Ørsted, 35-60 kilometers off the coast of Taiwan’s Changhua County. The company expects the projects to be complete in 2022. The projects are expected to be able to supply around 1 million Taiwanese households with green power.
Matthias Bausenwein, President of Ørsted Asia-Pacific, said:
“It has been our commitment to share our vast offshore wind financing experience with Taiwan’s financial community since the early stages of developing the Greater Changhua projects. We are glad to successfully achieve this important milestone by bringing our reliable and experienced partner CDPQ to Taiwan for the first time. We are equally thrilled to collaborate with our local partner Cathay PE, so that the Greater Changhua 1 will also be locally owned.”
Under the terms of the deal, the investors will receive a 50% ownership share in the project, and will fund 50% of the engineering, procurement and construction (EPC) costs for the wind farm, including generation and transmission assets. Ørsted will retain 50% share of the project, and will deliver long-term operations and maintenance (O&M) services to the project. According to the companies, the 50-50 partnership is the first of its kind in the APAC offshore wind sector.
CDPQ will be the majority owner among the two new partners. According to the company, the transaction marks its first investment in an offshore wind farm in Asia Pacific, adding to the investor’s portfolio of renewable energy assets in the Americas, Europe and India.
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, said:
“This investment in Taiwan, which represents an attractive market for CDPQ, allows us to further diversify our presence in Asia. As an investor with vast experience in renewable energy, we seek this kind of greenfield opportunity to contribute to the transition towards a low carbon economy. Working alongside our long-term partner Ørsted, and experienced local investor Cathay PE, we are proud to support the Greater Changhua 1 Offshore Wind Farm, which will supply clean power to over 650,000 Taiwanese families.”
Jeff Chang, Chairman, Cathay PE, added:
“We are delighted to team up with CDPQ to invest alongside Ørsted in the Greater Changhua 1 Offshore Wind Farm project. This landmark transaction represents an important milestone in Taiwan’s energy transition towards a low-carbon future and fits perfectly with Cathay PE’s investment mandate to invest in high quality energy infrastructure projects alongside world class partners.”