Ørsted has reached a final investment decision (FID) on the Greater Changhua 2b and 4 offshore wind farms in Taiwan, which will have a combined capacity of 920MW.

The Danish power company plans to build the two facilities 35-60km off the Changhua coast.

All the environmental impact assessment approvals for the Greater Changhua 2b and 4 offshore wind projects have been secured.

Ørsted is expected to commence the onshore construction of the Taiwanese offshore wind farms this year. The fabrication of components scheduled to take place in 2023-2024, said the Danish energy company.

Completion of the offshore construction of the wind farms is anticipated by the end of 2025.

Funding for the wind farms will be met by capital provided by the Ørsted Group along with debt capital obtained from the domestic Taiwanese market.

To be installed in a water depth range of 23.8m-44.1m, the Greater Changhua 2b and 4 wind farms will spread over an area of 185km2. The projects will be equipped with wind turbines of 14MW capacity.

The Taiwanese offshore wind projects were awarded to Ørsted in June 2018.

In July 2020, the company signed a corporate power purchase agreement (CPPA) with Taiwan Semiconductor Manufacturing Company (TSMC) for the Greater Changhua 2b and 4 offshore wind farms.

Under the 20-year fixed-price contract period, TSMC will offtake the full power generated by the offshore wind project.

Ørsted Asia Pacific president Per Mejnert Kristensen said: “Today’s positive investment decision demonstrates that Ørsted is primed and ready to build and operate large-scale offshore wind projects in Taiwan.

“Our experience in Asia Pacific combined with our technical expertise, financial capabilities and close collaboration with stakeholders gives us full confidence that we will fulfil our commitments to the grid contract with the Taiwan authorities and the CPPA with TSMC.

“This final investment decision is a major step forward for our mission to accelerate Asia Pacific’s decarbonisation journey.”