Mitsui O.S.K. Lines (MOL), together with its partners Toho Gas, and Hokuriku Electric Power, has agreed to jointly buy a 25% stake in the entity that owns Formosa 1 offshore wind farm off Taiwan.

The group will purchase the stake in Formosa 1 International Investment from Macquarie’s Green Investment Group (GIG), through a new special purpose company.

With the transaction, Macquarie Group will exit from the offshore wind project, and the Japanese companies will enter offshore wind power business in Taiwan.

The acquisition marks the first investment for the three companies in the offshore wind power generation business outside of Japan.

Operated by Formosa I Wind Power (FWPC), the Formosa 1offshore windfarm is located off the coast of Miaoli County, Taiwan, with a generation capacity of 128MW.

It is the first utility-scale offshore wind farm in Taiwan, containing two plants, Phases 1 of 8MW and Phase 2 of 120MW, brought online in 2017 and 2019, respectively.

The offshore wind farm is contracted to generate and sell electricity to Taiwan Power Company, on the Feed in Tariff (FIT) scheme, under a 20-year agreement.

The acquisition will be carried out through a special purpose company (SPC), jointly established by the three companies in Taiwan.

In the SPC, the two companies, MOL and Toho will own 37.5% each, while Hokuriku will own a 25% stake.

The three Japanese companies are currently preparing to incorporate the SPC. Closing of the acquisition is subject to necessary approvals from the Taiwanese authorities.

In October 2020, CWind Taiwan won a balance of plant (BOP) contract for Formosa 1 Offshore Wind Farm from Formosa 1 Wind Power (FOWI).