UK Export Finance (UKEF), the UK’s export credit agency, is to provide £230M (NT$9.2Bn) of project finance guarantee to support the construction of the Formosa 2 offshore windfarm in Taiwan
The project is led by Macquarie’s Green Investment Group and Swancor Renewable Energy and involves constructing 47 turbines generating 376 MW of green energy, forming part of the Taiwanese authorities’ target of generating 20% of its power from renewable sources by 2025.
As a result of UKEF’s support for the project, UK companies will be involved in constucting the Formosa 2 offshore windfarm, helping to unlock the export potential of this growing sector of the UK economy.
UKEF chief executive Louis Taylor said, “The UK is a world leader in generating offshore wind energy, and UKEF is committed to maximising opportunities for our world-class companies in this sector. By supporting this project, UKEF is making these opportunities a reality in new markets while helping Taiwan reduce its reliance on fossil fuels.”
Green Investment Group global head Mark Dooley said, “We are delighted to have UKEF on board as a main finance provider. Its support will play an important role in the delivery of Formosa 2 and help the UK’s offshore wind supply chain to benefit from the project alongside our local Taiwanese partners.”
The deal not only gives the UK and UK businesses a stronger foothold in Taiwan’s offshore wind market, but also the wider region as new opportunities emerge in markets such as Japan, South Korea and Vietnam.
Taiwan is currently developing 5.5 GW of offshore wind up to 2025 and has an ambition of a further 5 GW up to 2030. Many international companies working in offshore wind, including 18 from the UK, have set up operations in Taiwan to help develop the local industry in collaboration with Taiwanese partners.