Japanese energy group JERA has planted its flag in offshore wind in Taiwan and the UK with deals for stakes in two projects.
JERA inked a deal with Macquarie Capital and Swancor to acquire a 32.5% share in the Formosa 1 offshore wind project in Taiwan.
Following the agreement, JERA will become the second biggest shareholder of Formosa 1, with Danish developer Orsted controlling the majority 35%, and Macquarie and Swancor holding 25% and 7%, respectively.
The 128MW Formosa 1 is a demonstration offshore wind project off Taiwan. The first phrase of the project, two turbines totaling 8MW, has been operating since April 2017, while the following 20 units of SGRE 6MW turbines set to start operation by 2019.
The deal is subject to regulatory approval. The transaction of Swancor’s 7.5% share to JERA is worth $20m, according to Swancor's filing to the Taiwanese stock exchange.
Swancor which initiated the demo project will “still take full responsibility to ensure project timeline of Formosa 1”, an official of Taiwan Ministry of Economic Affairs (MOEA) commented, according to Taiwan’s Economic Daily.
The deal helps JERA to set foot in Asia’s offshore wind market, which “is still at an early stage but has much room to develop,” JERA said in a statement.
“Through its participation in Formosa 1, JERA will gain knowledge and experience in construction and operation of offshore wind power generation and leverage this to move forward with projects in Japan and abroad,” the firm adds.
On the same day, JERA announced it will acquire 24.95% equity of the 172.8MW Gunfleet Sands Offshore Wind Farm off the UK from fellow Japanese power company Marubeni Corporation.
The firm said it will work with the two other shareholders Orsted and the Development Bank of Japan to gain offshore wind knowledge.
As the biggest LNG importer of Japan, JERA is a joint venture established in 2016 by Japanese energy firms TEPCO and Chubu Electric Power for their upstream fuels and overseas power business.
The firm will soon emerge as the nation’s biggest power producer, after a planned asset restructuring to occur on April 2019, which allows JERA to take control of the domestic power business of its two mother companies.
