UK Export Finance (UKEF) has provided a guarantee for £380m in financing for the Hai Long offshore wind project, one of Asia's largest, with a capacity of 1GW. The support is contingent on the project sourcing from the UK, resulting in over £130m in confirmed manufacturing and service contracts for British businesses.
The Hai Long scheme, developed by Mitsui of Japan and Northland Power of Canada, received a project financing package exceeding £3bn from more than 15 lenders. UKEF, as one of seven export credit agencies guaranteeing the financing, plays a key role in facilitating the project's financial support.
This marks UKEF's fourth involvement in supporting an offshore wind project in Taiwan and elevates the agency's total commitment to clean energy projects in the Asia Pacific region to over £1.2bn. The guarantee from UKEF aligns with the UK government's emphasis on clean energy initiatives and its commitment to reaching net-zero carbon emissions.
UKEF Chief Executive Tim Reid emphasized the significance of clean energy projects like Hai Long in the context of global efforts to achieve net-zero targets. With the recent modernization of the OECD Arrangement expanding the range of support for climate-friendly projects, Reid anticipates more multi-agency transactions like this in the future, benefiting British businesses in the clean energy sector.