Macquarie Capital makes its final investment decision on the second phase of Taiwan’s Formosa I offshore wind farm

Macquarie Capital, the corporate advisory, capital markets and principal investment division of Macquarie Group, today announces it has taken its final investment decision for 50 per cent ownership in the second phase of Taiwanese offshore wind farm Formosa I.

The 128MW Formosa I project represents Taiwan’s first utility-scale offshore wind farm. The first phase of 8MW has been successfully operating for over 12 months, with the second phase of 120MW due to complete construction in late 2019. The project has secured the support of Taiwan Power Company under a 20 year Power Purchase Agreement.

Hajir Naghdy, Head of Macquarie Capital in Asia, said: “Macquarie Capital is dedicated to supporting the growth of the global green economy, we are pleased to partner with Swancor Renewable and Ørsted in developing the Formosa I offshore windfarm and leading its financial close. Today’s decision demonstrates our commitment to the project and the market, and we are proud to be at the forefront of Taiwan's renewable energy transition.”

Ryan Chua, Head of Macquarie Capital in Taiwan, said: “Macquarie Capital has extensive experience in the renewable energy sector globally, complemented by the depth of our specialist financial and technical capabilities. Our expert team is committed to the smooth delivery of the project and further development of our 2.0GW+ offshore wind pipeline in Taiwan.”

Formosa I is jointly developed by Macquarie Capital (50 per cent), leading Taiwanese developer Swancor Renewable (15 per cent) and Ørsted (35per cent). Siemens Gamesa and Jan de Nul have been awarded turbine and foundation and cabling contracts respectively. Fortune Electric was awarded with upgrade works on the onshore substation in Miaoli County

Today, Formosa I has successfully reached financial close on the first project finance debt facility for offshore wind in Taiwan. The financing secured strong interest from a club of local and international banks demonstrating the robustness of the project and the potential of Taiwan’s offshore wind sector.