Ørsted sells 50% of Greater Changhua 4 Offshore Wind Farm to Cathay Life Insurance

Ørsted announces an agreement with Cathay Life Insurance to sell 50% of the Greater Changhua 4 Offshore Wind Farm under construction in Taiwan, marking a key step in their strategic energy partnership.

Partagez:

The Danish company Ørsted has finalized an agreement with Cathay Life Insurance, Taiwan’s leading insurance provider, for the sale of a 50% stake in the Greater Changhua 4 Offshore Wind Farm, with a capacity of 583 MW. This operation represents a strategic move in the development of energy projects in Taiwan. Ørsted will retain the remaining 50% and will continue to oversee the project’s construction and operations.

Greater Changhua 4 is part of the Greater Changhua 2b and 4 projects, with a combined total capacity of 920 MW. Currently under construction, these farms are expected to be completed by the end of 2025. Ørsted will manage the project under an engineering, procurement, and construction (EPC) contract while also providing long-term operations and maintenance (O&M) services from its hub located at the Port of Taichung.

A strategic transaction

The total value of the transaction, which includes Cathay Life’s participation in EPC payments, amounts to approximately DKK 11.6 billion. The sum will be distributed across 2024 and 2025, with all regulatory approvals already obtained. The transaction is expected to close before the end of the year.

According to Rasmus Errboe, Deputy CEO and Chief Commercial Officer at Ørsted, this partnership represents an important milestone in the company’s divestment program and contributes to its medium- and long-term financial goals.

A structured and supported financing

The financing structure relies on guarantees provided by six international and local export credit agencies, including Credendo, Export Finance Australia (EFA), and UK Export Finance (UKEF). Notably, the National Credit Guarantee Administration (NCGA), a Taiwanese public organization, is participating in offshore wind financing for the first time.

Andrew Liu, President of Cathay Life Insurance, stated that this investment aligns with the insurance sector’s long-term return objectives while supporting Taiwan’s economic growth.

Commercial and energy context

The Greater Changhua 4 project benefits from a 20-year fixed-price corporate power purchase agreement (PPA) with Taiwan Semiconductor Manufacturing Company (TSMC), a key player in the semiconductor industry. This collaboration ensures economic stability for the development of the Greater Changhua 2b and 4 projects.

The Greater Changhua 4 Wind Farm is located near the already operational Greater Changhua 1 and 2a projects, which have a combined capacity of 900 MW. The entire Greater Changhua cluster has a combined installed capacity of 1.82 GW, strengthening Taiwan’s role as a strategic hub for renewable energy development in the Asia-Pacific region.

The European Investment Bank grants EWE AG historic €450mn financing for the installation of 2,600 km of underground power lines and the upgrade of over 1,100 substations in Lower Saxony.
Japan’s Ministry of Industry and Siemens Gamesa Renewable Energy launch a strategic partnership to develop local offshore wind supply chains and strengthen the country's industrial competitiveness in this energy sector.
Energiekontor AG confirms financial close for the Nartum wind farm, adding 23 megawatts to its owned portfolio and starting the construction phase in the Rotenburg district, Lower Saxony.
Airloom Energy begins construction of a pilot site in Wyoming to test an innovative turbine aimed at enhancing American energy security in the face of anticipated growth in electricity demand.
ACCIONA Energía transfers the San Juan de Marcona wind farm to Luz del Sur S.A.A., a major player in Peru's energy sector, for up to USD 253 million, pending necessary regulatory approvals.
German operator Encavis AG strengthens its portfolio by acquiring two wind farms in Lower Saxony and Saxony, totalling 59 MW, in a transaction with Energiequelle GmbH, thereby expanding its renewable energy assets.
Ocergy officially launches an industrial project aiming to install by 2028 a new-generation floating wind turbine of over 15 MW, in partnership with EnBW, Kyuden Mirai, and TEPCO Renewable Power.
France officially commissions its first floating wind farm, consisting of three turbines with a combined capacity of 25 megawatts, introducing strategic technology in the Mediterranean, vital for national energy goals.
Inaugurated on 20 June, the five-turbine plant of wpd onshore France feeds 18 MW into the grid and unlocks new tax revenue for four Côtes-d’Armor municipalities.
Statkraft refocuses investments on flexible Nordic hydropower and reduces commitments in offshore wind and hydrogen to lower operating costs, amid an uncertain economic environment and pressured profitability.
Suzlon Group receives third consecutive order from AMPIN Energy Transition to supply 170.1 MW of wind turbines for a project in India's Andhra Pradesh state, strengthening their strategic industrial partnership.
The Muir Mhòr floating wind project secures Aberdeenshire's onshore consent, paving the way for the potential production of one gigawatt of electricity, enough to power up to 1.2 million British homes by the early 2030s.
Iberdrola España and Renfe conclude a virtual power purchase agreement for 370 GWh per year for ten years, strengthening the use of renewable energy in Spanish railway transport.
TotalEnergies has been awarded a concession in the North Sea enabling the development of a 1GW offshore wind project, reinforcing its strategic presence in Germany.
With an annual increase of 14%, global offshore wind capacity now reaches 85.2 gigawatts, driven mainly by China, the United Kingdom, and Germany, while another 27.3 gigawatts are currently under construction.
Seabed exploration begins in Jammerland Bay to validate the placement of sixteen turbines and the cable corridor, the first tangible step before construction of the project led by TotalEnergies and European Energy.
RWE and Østermark Entreprenørforretning celebrate advanced construction of the operational building for Denmark's largest offshore wind farm, promising up to 60 permanent local jobs by 2026.
RWE and Amazon Web Services enter a strategic collaboration to supply renewable energy for data centres and accelerate digital capabilities within the global energy sector.
SSE Renewables inaugurated its first wind farm in Southern Europe in Chaintrix-Bierges and Vélye, with eight Siemens Gamesa turbines and an investment exceeding €30mn ($32.3mn).
The Astenn Avel consortium, led by Elicio and Q ENERGY, brings in VALOREM to bid for the 500 MW floating wind project planned off the coast of Southern Brittany.