USD3.67 Billion Credit Agreement Signed for 1.02 GW Offshore Wind farm in Taiwan

Northland Power Inc. (Northland) announced that it has signed a credit agreement to secure CAD5 billion (US$3.67 billion) long-term over 20-year non-recourse financing for its Hai Long offshore wind project in Taiwan.

Hai Long is situated around 45 to 70 km off the Changhua coast in the Taiwan Strait and is comprised of two phases: Hai Long 2 and Hai Long 3. These phases are anticipated to collectively generate 1,022 MW of power. Hai Long 2A was granted a grid capacity allocation of up to 294 MW through a feed-in tariff mechanism, while Hai Long 2B and 3 secured a grid capacity allocation of up to 728 MW.

The project has received all necessary environmental approvals, and major construction permits, and has commenced preliminary construction work and component fabrication. Furthermore, the project has secured a 15-year operations and maintenance agreement with the turbine supplier, including extension options. Hai Long, a 1.0 GW offshore wind venture, is a collaborative effort between Northland (60% ownership) and Mitsui & Co. (40% ownership). The estimated total capital cost for the project is around CAD9 billion (US$6.66 billion), and Northland has successfully secured all the equity funding required for the project.

Financial closure is expected in the Q4 of 2023. Full construction and commercial operations are slated for completion by 2026/2027.