Japan's Mitsui & Co and Canada's Northland Power Inc have officially sealed a strategic plan to construct a colossal 1-gigawatt (GW) offshore wind farm in Taiwan. This monumental venture is estimated to come with a hefty price tag of 960 billion yen, equivalent to approximately $6.5 billion.
This landmark agreement aligns with the global trend of nations actively seeking investments in offshore wind power projects. The overarching goal is to combat the adverse effects of climate change by reducing reliance on fossil fuels, thus contributing to the reduction of greenhouse gas emissions.
See also: Japan's Largest Offshore Wind Farm Construction Begins, Boosting Renewable Energy Ambitions
Mitsui and Northland Power, who initially secured a stake in the Hai Long bottom-fixed offshore wind project back in 2018, have set their sights on completing this ambitious project by the conclusion of 2026. The envisioned outcome is nothing short of impressive – generating a total power output of 1.022 GW, equivalent to meeting the annual electricity needs of one million households.
This mammoth undertaking, with Northland holding a 60% ownership stake and Mitsui accounting for the remaining 40%, will encompass the installation of a staggering 73 large wind turbines within an offshore expanse located 45-70 kilometres (approximately 30-45 miles) off Changhua county. This extensive project is divided into three distinct sections: HL2A, HL2B, and HL3.
Under the terms of this endeavour, HL2A will supply electricity to Taiwan Power Company through a 20-year power purchase agreement (PPA), while HL2B and HL3 will cater to the energy needs of a private power consumer in Taiwan under a 30-year PPA, as disclosed by Mitsui in an official statement.
See also: Formosa 2 Offshore Wind Farm Inaugurated in Taiwan
To finance this colossal project, Mitsui is poised to contribute a substantial 260 billion yen. This financial commitment will encompass a combination of 170 billion yen in equity and loans, as well as an additional 90 billion yen in guarantees. The remaining 540 billion yen required for the venture's funding will be procured through project finance. It is crucial to note that the finalisation of this agreement hinges on the implementation of project finance contracts, which are expected to take effect later this year, according to Mitsui.
The collaboration between Mitsui & Co and Northland Power Inc represents a significant stride towards enhancing renewable energy infrastructure, contributing to the global mission of reducing carbon emissions and mitigating the impacts of climate change. As nations worldwide continue to embrace sustainable energy solutions, initiatives of this magnitude serve as beacons of hope in the ongoing battle against global warming.
