Ørsted, a Danish multinational energy company, signed an agreement with Taiwan-based insurance company Cathay Life Insurance, and its affiliate, Cathay Wind Power Holdings Co., Ltd. Under the deal, Cathay Life Insurance will acquire a 50% ownership stake in Ørsted’s 583 MW Greater Changhua 4 Offshore Wind Farm. Ørsted will retain the remaining 50% ownership in the project, which is part of the 920 MW Greater Changhua 2b and 4 offshore wind farms currently under construction and expected to be completed by the end of 2025. This marks the first time the Taiwan government’s National Credit Guarantee Administration (NCGA) has guaranteed offshore wind financing.
The total value of the transaction, including the acquisition of the 50% ownership share and a commitment from both partners to fund 50% of the payments under the EPC (engineering, procurement, and construction) contract, is approximately DKK 11.6 billion. Payments will be made in 2024 and 2025. With all regulatory approvals secured, the deal is expected to close by the end of this year.
As part of the agreement, Ørsted will oversee the construction of the Greater Changhua 4 Offshore Wind Farm through a full-scope EPC contract. Additionally, Ørsted will provide long-term operations and maintenance (O&M) services from its O&M hub at the Port of Taichung.
Ørsted’s Deputy CEO and Chief Commercial Officer, Rasmus Errboe, welcomed the partnership and 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.”
Cathay Life Insurance, a subsidiary of Cathay Financial Holdings and an investor in Ørsted’s Greater Changhua 1 Offshore Wind Farm, expressed its commitment to the renewable energy transition. 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, Senior Vice President and CEO of Region APAC at Ørsted, highlighted the significance of the collaboration. “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,” he said.
The financing package for the project, structured and led by Ørsted, is supported by guarantees from six export credit agencies: Credendo, the Export and Investment Fund of Denmark (EIFO), Export Finance Australia (EFA), Korea Trade Insurance Corporation (KSURE), National Credit Guarantee Administration (NCGA), and UK Export Finance (UKEF).
The Greater Changhua 4 project is being developed alongside Greater Changhua 2b, in which Ørsted has full ownership. The combined 920 MW capacity of Greater Changhua 2b and 4 is backed by a 20-year fixed-price corporate power purchase agreement with Taiwan Semiconductor Manufacturing Company (TSMC).
Located adjacent to the fully operational 900 MW Greater Changhua 1 and 2a wind farms, the Greater Changhua 2b and 4 developments form part of the broader 1.82 GW Greater Changhua offshore wind cluster. Together, the cluster will generate enough electricity to power nearly two million Taiwanese households, reducing carbon emissions by approximately 3.5 million tonnes annually.
