Global institutional investor Caisse de dépôt et placement du Québec (CDPQ) and Cathay PE have signed an agreement with Ørsted to co-invest in the 605MW Greater Changhua 1 offshore wind farm.

Greater Changhua 1 is part of the 900MW Greater Changhua 1 & 2a offshore wind farms, located 35-60km off the coast of Changhua County, Taiwan.

Ørsted is currently constructing the wind farms and expects to complete them in 2022.

Under the terms of the agreement, CDPQ and Cathay PE will jointly own 50% of the Greater Changhua 1, with Ørsted retaining the remaining stake.

The stake will be purchased for a total amount C$3.4bn ($2.6bn), which will be utilised to pay for the EPC services for Greater Changhua 1.

CDPQ and Cathay PE will buy the stake in the Greater Changhua 1 through a multi-tranche financing package from 15 international and local banks and two local life insurance companies.

The completion of the transaction is subject to all customary and regulatory approvals by Taiwanese authorities.

Ørsted partnerships & structured solutions head and vice president Kunal Patel said: “This transaction marks the evolution of our partnership model into Taiwan, leveraging our extensive track record of development, construction and operation of large offshore wind farms.

“With a long–term agenda in Taiwan, we remain committed to the Greater Changhua 1 project and will also reutilize the capital into further developing new offshore wind projects to assist Taiwan in achieving its energy transition goals.”

Upon completion of the offshore wind farm, Ørsted will deliver the long-term operations and maintenance (O&M) services to the project.

The Danish energy company is also the biggest shareholder and co-owner of Taiwan’s first commercial-scale offshore wind project, Formosa 1.