- Global institutional investor CDPQ and experienced local investor Cathay PE will co-invest 50% of the 605MW Greater Changhua 1 Offshore Wind Farm.
- Ørsted will retain a 50% share ownership in the Greater Changhua 1 Offshore Wind Farm, as well as deliver the full construction and long-term O&M services for the project, which is expected to be completed by 2022.
- The partnership is based on a financing model for offshore wind projects that is unique in the Asia-Pacific Region.
- This is CDPQ’s first direct investment in Taiwan through its Infrastructure team, which has a long track-record in the renewable energy sector.
Taipei and Montreal, December 29, 2020 - Ørsted announced today that it has signed an agreement with a consortium of world-leading investors, which consists of global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and established local investor Cathay PE, to co-invest in the 605MW Greater Changhua 1 Offshore Wind Farm (Greater Changhua 1). CDPQ and Cathay PE will jointly own 50% of the Greater Changhua 1 and Ørsted will retain a 50% share. The majority of the deal amount of approximately TWD 75 billion (approximately DKK 16 billion, or 4 billion CAD) will be used to pay for the EPC services for Greater Changhua 1.
The transaction is still subject to all customary and regulatory approvals by Taiwanese authorities.
Matthias Bausenwein, President of Ørsted Asia-Pacific, says: “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.”
Christy Wang, General Manager of Ørsted Taiwan further elaborated, “The transaction is enabled by Ørsted taking all of the development risk and the majority of the construction risk, leveraging our extensive track-record of development, construction and operation of large offshore wind farms. With a long-term agenda in Taiwan, we will remain committed to the Greater Changhua 1 but also reutilize the capital into developing new offshore wind projects here to assist Taiwan in achieving its goal of energy transition.”
Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure, CDPQ, says: “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.”
Cyril Cabanes, Managing Director, Infrastructure, Asia Pacific, CDPQ, adds: "We are excited to take this first step in Taiwan’s renewable energy market, where we see many prospects and opportunities to collaborate with esteemed international and local partners who share our interest in developing high-quality infrastructure. We are also committed to further expand our renewables and energy footprint in Asia Pacific, building upon this investment and other successful platforms that we have developed in India and Australia over the past few years.”
This investment in Greater Changhua 1 is an important step for CDPQ’s CAD 28-billion infrastructure portfolio. Indeed, this marks the first time that CDPQ is investing in an offshore wind farm in Asia Pacific, which reflects CDPQ’s confidence in Ørsted’s track record and adds the asset to the institutional investor’s long list of investments in solar and wind energy across the Americas, Europe and India.
Jeff Chang, Chairman, Cathay PE, says: “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.”
The 50-50 partnership is the first of its kind in the APAC offshore wind sector and will help stimulate further opportunities in the Taiwanese market for offshore wind. Ørsted will retain 50% share of the Greater Changhua 1, which will be financed by its corporate balance sheet and will deliver the long-term operations and maintenance (O&M) services to the project. Greater Changhua 1 is part of the 900MW Greater Changhua 1 & 2a Offshore Wind Farms, which Ørsted is currently constructing and expects to be completed in 2022.
CDPQ and Cathay PE will acquire a 50% share of the Greater Changhua 1 via a multi-tranche financing package from 15 international and local banks and two local life insurance companies: Cathay United Bank, CTBC Bank, E-SUN Bank, Taipei Fubon Bank, Cathay Life Insurance Co., Taiwan Life Insurance Co., BNP Paribas, Crédit Agricole, Deutsche Bank, DZ Bank, HSBC, Korea Development Bank, Oversea-Chinese Banking Corporation, Siemens Bank, Société Générale, Standard Chartered and Sumitomo Mitsui Banking Corporation.
The financing package, which was structured and led by Ørsted, will be partially supported by guarantees and/or loans from five international export credit agencies (ECAs); Eksport Kredit Fonden (EKF) of Denmark, UK Export Finance (UKEF), Atradius of the Netherlands, Korea Trade Insurance Corporation (KSURE), and Export Development Canada (EDC), which participates for the first time in an offshore wind farm deal in Taiwan.