COPENHAGEN - Ørsted A/S (ORSTED.CO), a global leader in offshore wind, has entered into an agreement with Taiwan's Cathay Life Insurance (NS:LIFI) to sell a 50% stake in its 583 megawatt Greater Changhua 4 Offshore Wind Farm. The transaction, valued at approximately DKK 11.6 billion, is expected to close by year's end, following regulatory approval.
Cathay Life Insurance, part of Cathay Financial Holdings, is expanding its portfolio in the renewable energy sector with this acquisition. The insurer has previously invested in Ørsted’s Greater Changhua 1 Offshore Wind Farm through its affiliate Cathay Private Equity.
The Greater Changhua 4 project, along with the Greater Changhua 2b, is under construction with completion anticipated by the end of 2025. These projects, combined with the operational Greater Changhua 1 and 2a farms, form a significant renewable energy cluster in Taiwan. Ørsted will retain a 50% stake in Greater Changhua 4 and provide operations and maintenance services from its hub in the Port of Taichung.
Rasmus Errboe, Deputy CEO and Chief Commercial Officer at Ørsted, highlighted the importance of the partnership with Cathay, noting the transaction aids in meeting the company's mid- and long-term objectives. Andrew Liu, President of Cathay Life Insurance, emphasized the investment's alignment with both the government's renewable energy goals and the insurance sector's need for stable, long-term returns.
The funding package for the project is supported by guarantees from six export credit agencies, marking the first involvement of Taiwan's National Credit Guarantee Administration in offshore wind financing.
The Greater Changhua wind farms, once fully operational, will contribute significantly to Taiwan's energy transition, with the capacity to power nearly two million households and reduce carbon emissions by 3.5 million tonnes annually.
This strategic partnership and investment underscore the growing trend of collaboration between global renewable energy developers and local financial institutions to advance green energy projects. The information in this article is based on a press release statement.
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