Macquarie Capital and Dong Energy have signed an agreement to acquire 50% and 35% stakes, respectively, in the Taiwan’s first offshore wind project, Formosa I, from local developer Swancor Renewable.

Located approximately 3km off the coast of Miaoli County in North-West Taiwan, the 128MW Formosa I is being developed in two phases.

The 8MW first phase, featuring two Siemens-built SWT-4.0-120 offshore wind turbines, was commissioned in October 2016.

The second phase involves installation of a further 120MW of capacity during 2019. It is subject to final investment decision.

Upon completion of the deal, the Formosa I wind farm will be jointly owned by Macquarie Capital with 50% stake, Dong Energy 35%, and Swancor Industries 15%.

Dong Energy Wind Power executive vice-president and CEO Samuel Leupold said: “With Swancor’s local expertise, Macquarie’s strong track record in renewables, and DONG Energy’s 25 years of experience in offshore wind, we have formed a strong partnership to execute on this project.”

As part of the deal, the three firms will partner to complete the development and construction of the wind farm.

DONG Energy will provide advisory services while Swancor Renewable will lead the project through site development and construction.

Dong Energy Asia Pacific general manager Matthias Bausenwein said: “Offshore wind will be a key component in Taiwan's future energy mix, and Formosa 1 is an important milestone for a successful deployment of offshore wind in Taiwan.

“This project will enable DONG Energy to gain fast track development, construction and operational experience in a new market, which we will leverage for further activities in Asia.”

The deal is subject to a number of conditions including approvals from the EU and Taiwan Investment Committee.

Image: Taiwan intends to have 4GW of installed offshore wind capacity by 2030. Photo: courtesy of xedos4/