Northland Power has revealed that its 1.02GW Hai Long offshore wind project in Taiwan has secured a long-term non-recourse financing of C$5bn ($3.7bn) spanning 20 years.

The anticipated weighted average all-in interest cost for the financing period is approximately 5%.

According to Northland Power, the non-recourse project financing will be extended by more than 15 international and local lenders, with the backing of export credit agencies (ECAs) from six countries.

The Hai Long offshore wind project is poised to achieve financial closure in the near future, contingent upon the fulfillment of all pertinent prerequisites for the financing.

Upon reaching financial closure, the total debt and equity needed for the project are anticipated to be fully covered. This encompasses future cash inflows expected from sell-down proceeds and pre-completion revenues.

Hai Long is expected to have an estimated total cost of around C$9bn ($6.7bn). Funding for this will primarily come from C$5bn ($3.7bn) in non-recourse debt provided by project lenders, approximately C$1bn ($740m) in pre-completion revenues, and the remaining equity investment contributed by the project’s partners.

It is being developed as a 60:40 joint venture between Northland Power and Mitsui & Co.

Northland Power chief financial officer Pauline Alimchandani said: “This financing is Northland’s first in Asia and, once closed, will be the largest non-recourse offshore wind project financing to date in the region.

“We would like to thank the project team, our partners, and all the financial and capital providers for working together to achieve this significant milestone. Once operational, Hai Long is expected to provide significant, long-term contracted Adjusted EBITDA and Free Cash Flow to our business and shareholders.”

Hai Long is situated roughly 45-70km off the Changhua coast in the Taiwan Strait. It comprises two phases Hai Long 2 and Hai Long 3, which are expected to generate enough energy to power more than one million Taiwanese households.

The project is anticipated to reach completion of construction and full commercial operations in 2026/2027.

Hai Long CEO Tim Kittelhake said: “The Hai Long project team will work with our partners to deliver the Project on time, on scope, and on budget. Once completed, Hai Long will play an important role in helping Taiwan achieve its offshore wind power capacity targets of 40 – 55 GW by 2050.”