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DONG Energy has signed an agreement to acquire a 35% ownership interest in the Taiwanese offshore wind project Formosa I from local developer Swancor Renewable. Completion of the transaction is subject to a number of conditions precedent including approval from the EU and from the Investment Commission under Taiwan’s Ministry of Economic Affairs.
The new owners of Formosa I are DONG Energy (35%), Macquarie Capital (50%), and Swancor Industries (15%). While DONG Energy will provide advisory services, Swancor Renewable will continue to lead the project through site development and construction. Macquarie Capital will work closely with DONG Energy and Swancor Renewable to complete the development and construction of the project.
A Strong Partnership
Samuel Leupold, Executive Vice President and CEO of DONG Energy Wind Power, says:
“The agreement demonstrates our commitment to the Taiwanese market and to the government’s offshore wind plans. We look forward to engaging in Formosa I and accelerating Taiwan’s first commercial-scale offshore wind project. With Swancor’s local expertise, Macquarie’s strong track record in renewables, and DONG Energy’s 25 years of experience in offshore wind, we have formed a strong partnership to execute on this project.”
Hajir Naghdy, Head of Macquarie Capital, Asia and the Middle East, says:
“Macquarie Group has a substantial and longstanding commitment to the renewable energy and clean technology sectors and we see great opportunities in Taiwan’s wind energy sector and we are pleased to be able to partner with Swancor, the leading Taiwanese offshore wind developer on its Formosa I project and with DONG Energy, an industry leader and pioneer in offshore wind power development globally.”
Robert Tsai, Chairman and CEO of Swancor Group, says:
“As a pioneer of Taiwan offshore wind development, we try to integrate international experience with local expertise. It’s our pleasure to have Macquarie and DONG Energy joining Formosa I. This remarkable partnership will help to push forward the delivery of this project.”
With the combination of DONG Energy and Macquarie Capital together with Swancor Renewable, Formosa I will leverage their respective expertise to collaborate on the design, investment, engineering, procurement and construction (EPC), operation and maintenance (O&M) and financing. The combination of the three companies will help to bring a strong partnership to the Taiwan offshore wind energy market.
Ambitious targets for offshore wind
Apart from its engagement in Formosa I, DONG Energy is currently developing four offshore wind sites in the Changhua area. The four projects are expected to have a total capacity of at least 2GW and are due to start construction in 2021-2024, subject to environmental impact assessment and final investment decision.
Matthias Bausenwein, General Manager for DONG Energy Asia-Pacific says:
“Offshore wind will be a key component in Taiwan's future energy mix, and Formosa I is an important milestone for a successful deployment of offshore wind in Taiwan. We are happy to contribute to its realization and bring our experience as global market leader to the project. This project will enable DONG Energy to gain fast track development, construction and operational experience in a new market, which we will leverage for further activities in Asia.”