Supplier chain localization Taiwan

Global offshore wind leader Ørsted is moving full speed ahead to realize its Greater Changhua projects’ first 900MW and localization plays a key role here: Ørsted has signed contracts with 30 local suppliers and expects to award another 10 more major contracts within the next two months for the offshore wind projects construction phase, including onshore substation, underwater foundation, turbine, and offshore cable installation.

In addition, Ørsted Taiwan urges international turbine suppliers to accelerate localization efforts and provide clear action plans to further localize turbine sub-components (apart from turbine towers) while working with local suppliers through either local manufacturing or assembly facilities in Taiwan. This will be an important factor for Ørsted’s final turbine supplier selection.

Matthias Bausenwein, Ørsted’s General Manager for Asia Pacific, pointed out that "Since we established our office in Taiwan, during more than 800 days of hard work, we have signed 60 contracts with around 30 local suppliers. Greater Changhua projects’ first 900MW will support the development of a strong local supply chain. We will continue to share our expertise in offshore wind and to support local companies to elevate their competence and capacity.”

Total investments of up to NT$165 billion for the first 900MW

Ørsted has submitted around NT$2.5 billion bank guarantee letter as grid performance bond to Ministry of Economic Affairs while signing the administrative contract with the Ministry.
Subject to Ørsted obtaining all needed permits and taking final investment decision, Ørsted will start onshore construction next year.
The first 900MW will require total investments of up to NT$165bn. Ørsted will fund the Greater Changhua projects by capital contributions from the Ørsted Group combined with debt capital sourced from local Taiwanese financial institutions - backed by a Ørsted A/S parent company guarantee.

Taiwanese onshore transmission EPC contractor to be announced in the next two months

Ørsted will announce to sign an EPC contract for the first onshore substation in the next two months. The onshore substation EPC contract value for one project is more than NT$ 3 billion.
The appointed EPC contractor will source mainly from local builders and suppliers to deliver the construction. Ørsted’s approved sub-suppliers for onshore substation include: CTCI, Star Energy, CHEM, Fortune, Tatung, Shinlin, Allis, Taya, Hong-Tai, PEWC

Developing local underwater foundation capacity from zero

Ørsted’s two transition piece (TP) mock-up contracts with an investment of NT$180 million aims to get local underwater jacket foundation suppliers ready for larger-scale manufacturing. Ørsted expects to sign foundation contracts with local suppliers in October.

Through the Ørsted’s TP mock-up contract, CWP set up a joint venture with Bladt to start the first TP mock-up manufacturing this May.
Ørsted will also sign a transition piece mock-up contract with CSC this September and have the delivery by mid of 2019.
Ørsted will donate a TP mock-up to Taiwan GWO training center in Taichung Harbour to transfer knowledge and support local training.
Ørsted is in direct negotiations with Formosa Heavy Industries and CSBC about manufacturing of pin-piles for Greater Changhua projects.

Taiwanese vessels for site investigation and offshore cable installation

Site investigation: Ørsted has awarded contracts of geotechnical and geophysical survey in 2017 and 2018 to Taiwanese suppliers Dragon prince, Pan Formosa and EGST. The total contract value has exceeded NT$1,500 million.
Offshore cable installation: Woen-Jinn has been selected as Ørsted’s preferred cable installation supplier. Earlier in May this year, the two parties signed a letter of intent for further cooperation. It is expected that a formal contract will be signed this September.

Matthias Bausenwein added, “Ørsted uses the Taipei office as the headquarter for Asia Pacific. We are actively developing other Asian markets and will share further business opportunities with our Taiwanese suppliers.”

About Ørsted in Taiwan

Ørsted has obtained site exclusivity on four offshore wind sites located between 35 and 60km from the shore of Changhua County. The four sites, which have a total potential capacity of 2.4GW, received environmental impact assessment approvals in February 2018. A total of approx. 1.8GW have now been earmarked for buildout in 2021 and 2025, and the remaining approx. 0.6GW can participate in future auction rounds.
Ørsted’s four Greater Changhua offshore wind farms could in total power approx. 2.8 million Taiwanese households and create thousands of jobs over their lifetime.
Ørsted is also the co-owner of Taiwan’s first commercial-scale offshore wind project, Formosa 1, which will be extended from its current 8MW capacity to 128MW in 2019.

As the world leader in offshore wind, Ørsted has installed more than 1,200 offshore wind turbines with a total capacity of approx. 5.1GW and has a further 3.8GW under construction. In addition, Ørsted has been awarded the above mentioned approx. 1.8GW offshore wind capacity in Taiwan, and secured the right to build approx. 1.1GW offshore wind capacity in Germany by 2025. It is Ørsted’s ambition to have installed a total offshore wind capacity of 11-12GW worldwide by 2025.

Ørsted goes full speed on localization in Taiwan