Wind Energy – Finance
Ørsted has signed an agreement with Cathay Life Insurance, the leading insurance company in Taiwan, and its affiliate Cathay Wind Power Holdings Co., under which Cathay Life Insurance will acquire a 50 % ownership share of Ørsted’s 583 MW Greater Changhua 4 Offshore Wind Farm, with Ørsted retaining a 50 % share.
The investment is the largest direct investment in an offshore wind farm made by a life insurer, marking a historic milestone for offshore wind in Taiwan. It also demonstrates Cathay Life’s strong support and commitment to the sector, contributing to Taiwan’s greener future.
The total sales price for the Greater Changhua 4 Offshore Wind Farm comprises the acquisition of a 50 % ownership share and the commitment from the partners to fund 50 % of the payments under the EPC contract for the wind farm.
The total value of the transaction is approximately TWD 53.3 billion (approx. DKK 11.6 billion), which is to be paid in 2024 and 2025. All regulatory approvals have been obtained, and the closing of the transaction is expected before the end of the year.
Greater Changhua 4 is currently under construction alongside Greater Changhua 2b, where Ørsted has full ownership.
Per Mejnert Kristensen, Senior Vice President and CEO of Region APAC at Ørsted, says: “We’re thrilled to work once again with our strong local partner Cathay to deliver the Greater Changhua 4 Offshore Wind Farm and provide stable clean energy to Taiwan. This landmark investment by Cathay Life, the largest made by a Taiwan life insurer in an offshore wind farm, is backed by nine international banks, three local private banks and three state-owned banks, as well as six foreign and local export credit agencies (ECAs). The transaction, which was significantly oversubscribed, not only underlines the banking sector’s confidence in Ørsted’s track record in building and operating offshore wind farms but also sets a new green investment paradigm in Taiwan.”
He adds: “We continue to see robust demand from investors seeking low-risked investments with stable returns in offshore wind farms. Through implementing Ørsted’s unique partnership model in Taiwan, we aim to have long-term collaborations with quality investors and attract more local capital to further drive the growth of offshore wind and Taiwan’s energy transition.”
As part of the agreement, Ørsted will construct the Greater Changhua 4 Offshore Wind Farm under a full-scope EPC contract. Ørsted will also provide long-term operations and maintenance (O&M) services from its O&M hub at the Port of Taichung.
