CIP raises $3bn for 589MW Changfang and Xidao offshore wind project

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Copenhagen Infrastructure Partners (CIP) has reached financial close for the 589MW Changfang and Xidao offshore wind project, raising a total of $3bn.

The offshore wind project will be located off the coast of Changhua County in Taiwan.

Expected to commence operations in the first quarter of 2024, the Changfang and Xidao offshore wind project will be powered by 62 of MHI Vestas 9.5MW turbines.

A consortium of 25 international and Taiwan banks and financial institutions have provided financing for the construction of the project.

“Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will once commercial operation start provide clean energy to more than 600,000 households in Taiwan,’ said Michael Hannibal, a CIP partner.

Under a 20-year power purchase agreement (PPA), power generated by the offshore wind project will be sold to the state-owned Taiwan Power Company.

CIP funds own the majority of stake in the Changfang and Xidao project, while two local life insurance companies Taiwan Life Insurance and TransGlobe Life Insurance hold a minority stake.

The project owners plan to localize the jacket foundations, pin piles, onshore substation, transport and installation contracts and over 15 wind turbine components.

In December 2019, the Taiwanese government approved the local content plan for the Changfang and Xidao offshore wind project.

Under eight key agreements, contracts for the construction of the wind project have already been awarded to international and local contractors.

In October 2019, Royal Boskalis Westminster (Boskalis) together with Taiwanese partner Hwa Chi Construction secured contract for the foundation scope of the project.

The contract includes the transportation and installation of sixty two three-legged jacket foundations and the accompanying 186 pin piles.

The offshore wind project will be the launching project for the new Bokalift 2 crane vessel of Boskalis.