Danish energy giant Ørsted has signed construction contract with Taiwanese supplier Woen-Jinn Harbour Engineering (WJ) for Greater Changhua projects’ array cable installation.
Ørsted’s contract includes a provision that enables WJ to invest in new-build cable laying vessel, allowing it to become a competitive offshore wind cable installation supplier across Asia in the future.
This contract is valued at NT$1bn ($32.5m) and as part of it WJ will have to install a significant scope of array cables and will secure substantial work for the projects to be constructed in 2021. The special financial arrangement will help WJ to invest in new cable laying vessel ‘WoenJinn#7’.
Ørsted Asia Pacific general manager Matthias Bausenwein said: “developing a local supplier in Taiwan requires significant resources and efforts from all aspects, such as commercial, technical, Quality, health, safety, environment (QHSE) standards, and even financial support. Ørsted Taiwan feels proud to partner with WJ and has gone extra miles in taking the collaboration to the next level.”
Ørsted stated that it has set up a dedicated team to work and exchange knowledge with WJ in developing the required standards and competences for this project. In the past two years, Ørsted claims to have visited WJ regularly and invested significant time and effort in developing WJ’s capabilities.
While working with Ørsted, WJ has also hired an additional staff of 20 and is planning further recruitment to help deliver the array cable contract.
The two companies have signed a Memorandum of Understanding (MOU) in last November, followed by several collaborative workshops on commercial, technical & QHSE topics, resulting in a signed Letter of Intent in this May.
Ørsted has secured site exclusivity for four offshore wind sites located between 35 and 60km from the coast of Changhua County. These four sites have a total potential capacity of 2.4GW. It has received environmental impact assessment approvals in February this year.
Subject to the company taking final investment decision, a total of 1.8GW of wind energy is expected to be built between 2021 and 2025.