Mitsui and Northland Power to build massive offshore wind farm off Taiwan
26 September 2023 18:11
Taiwan aims to install as much as 55 gigawatts of offshore wind power generation capacity on its journey to produce net-zero greenhouse gas emissions that cause climate change by 2050.
Now Japanese trading giant Mitsui & Co. and Canadian energy company Northland Power have agreed to financing for a massive JPY 960 billion/€6.10 billion offshore wind project that will help the island achieve its green goals.
“We are progressing yet another world-class offshore wind project despite a challenging market environment,” said Mike Crawley, president and chief executive officer of Northland, in a September 21 press release. “Offshore wind is necessary to meet global renewable energy demand in the years ahead and Northland is one of the few companies able to originate, develop, finance, construct, and operate such facilities.”
The Hai Long Offshore Wind Power Project will supply enough electricity to power 1 million households in Taiwan. It will include 73 large wind turbines from 45 to 70 kilometers off Changhua County on the western side of the island. The project will supply enough electricity to power 1 million households in Taiwan.
“Mitsui has identified [the] global energy transition as one of its key strategic initiatives,” the Tokyo-based company said in a press release issued on September 22. “We aim to transition to a decarbonized society through our business by supplying clean electricity derived from renewable energy sources.”
The project will consist of three sections that will generate a total of 1,022 megawatts. The Taiwan Power Company has signed a 20-year power purchase agreement, and a private buyer has agreed to a 30-year purchase agreement, both starting in 2025.
The Japan Bank for International Cooperation, Nippon Export and Investment Insurance, and other global financial institutions are expected to contribute approximately JPY 540 billion/€3.4 billion. Mitsui will contribute around JPY 260 billion/€1.65 billion. ce/jd