Energy firm Ørsted is selling half of a DKK23.2bn (€3.1bn) wind farm project off the coast of Changhua County, Taiwan to Cathay Life Insurance.
Ørsted said insurer Cathay and its wind power subsidiary will acquire a 50% stake in the 583MW Greater Changhua 4 Offshore Wind Farm, with Ørsted retaining the remaining 50% ownership.
The total transaction value for the wind farm stake of DKK11.6bn, includes the acquisition of a 50% ownership interest and the commitment to fund 50% of the construction costs, Ørsted added.
The deal involves Ørsted constructing the project and providing operations and maintenance services.
The Greater Changhua 4 site is part of Ørsted’s 920MW Greater Changhua 2b and 4 offshore wind farms, currently under construction and scheduled for completion by the end of 2025.
Rasmus Errboe, deputy CEO and chief commercial officer at Ørsted, said: “We’re pleased to apply our partnership model in Asia Pacific once again and advance the development of offshore wind in the region with Cathay, with whom we have great collaboration experience.
“We’re satisfied with the transaction as it represents another important milestone in our partnership and divestment programme and ensures further progress towards our mid- and long-term targets.”
Andrew Liu, president of Cathay Life Insurance, said: “We’re delighted to partner with Ørsted on the development of the Greater Changhua 4 Offshore Wind Farm project.
“This investment underscores our dedication to supporting the government’s renewable energy transition while simultaneously generating stable, long-term returns that align with the investment goals of the insurance sector.”
Per Mejnert Kristensen, SVP and CEO of APAC region at Ørsted, said: “It’s a pleasure to welcome Cathay Life as a strong local partner for Greater Changhua 4. This landmark investment by Cathay Life, the largest made by a Taiwan life insurer in an offshore wind farm, is backed by international and local banks as well as foreign and local export credit agencies.
“The transaction not only underlines their confidence in Ørsted’s track record in building and operating offshore wind farms but also sets a new green investment paradigm in Taiwan.”
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