Offshore wind champion Orsted for the first time is selling off part of an offshore wind development in Asia, by divesting 50% of its 605MW Greater Changhua 1 project to Canada’s Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay PE.

The Greater Changhua 1 site is part of the 900MW Greater Changhua 1 & 2a offshore project, which Orsted is currently constructing and expects to complete in 2022.

The total value of the transaction is about 75bn Taiwanese new dollars ($2.67bn), which is to be paid in 2021 and 2022, including generation and transmission assets for the project located 35-60 kilometers off the coast of Changhua County.

“I’m delighted to welcome our long-term partner CDPQ and Cathay PE in Greater Changhua 1,” said Orsted Offshore’s chief executive Martin Neubert.

“Today’s announcement also marks a milestone in successfully applying our partnership farm-down model in Asia-Pacific for the first time.”

The new partners are obliged to fund half of the payments under a full-scope EPC contract for the wind farm to Orsted. The Danish utility will provide long-term operations and maintenance services from its Taiwanese O&M base at the port of Taichung.

The divestment is subject to regulatory approval from the Taiwanese authorities.

CDPQ’s head of infrastructure Emmanuel Jaclot said the investment in Taiwan allows the bank to further diversify its presence in Asia.

“As an investor with vast experience in renewable energy, we seek this kind of greenfield opportunity to contribute to the transition toward a low‑carbon economy.”

Cathay PE chairman Jeff Chang added: “This landmark transaction represents an important milestone in Taiwan’s energy transition towards a low-carbon future and fits perfectly with Cathay PE’s investment mandate to invest in high quality energy infrastructure projects alongside world class partners.”

Greater Changhua 1 & 2a combined will be able to supply 1m Taiwanese households with green power. Orsted in June 2018 was also awarded the right to build another 920MW off Changhua’s coast, at the Greater Changhua 2b&4 sites. Those are slated to be built in 2025 if grid availability is granted and Orsted takes a final investment decision, which is foreseen for 2023.

Wind

Orsted for first time divests part of Asian offshore wind project