Ørsted has signed a multi-million dollar contract with a wholly-owned subsidiary of China Steel Corporation for jacket-type foundations for offshore wind projects off Taiwan.
The contract was placed with Sing Da Marine Structure Corporation (SDMS), a wholly-owned subsidiary of China Steel Corporation (CSC).
Under the terms of the deal, SDMS will supply 56 jacket foundations for Ørsted’s 900-MW Greater Changhua project, which is to be installed in 2021. The deal is Ørsted’s largest so far for jacket foundations.
SDMS will extend its facilities in Sing Da Harbour in Kaohsiung and have a new factory operational in Q1 2020. The contract will not only give SDMS a strong pipeline of fabrication work but also allow it to gain experience by working with Ørsted.
Ørsted’s foundation team has spent more than 18 months developing the partnership with CSC and SDMS and plans to transfer knowledge to develop a local Taiwanese supply chain.
Ørsted president Asia Pacific Matthias Bausenwein said, “Foundations are an essential part of building offshore windfarms in Taiwan, not least due to the extraordinarily demanding site conditions in the Taiwan strait.
“For our Greater Changhua projects, we will have to use jacket foundations weighing more than 1,100 tonnes and reaching a height of approximately 75 m. Such large structures will require outstanding fabrication and installation skills. This contract is just the beginning of our long-term partnership with SDMS, which is one of the preferred suppliers for our future projects which will be built in 2025.”
The contract is subject to certain conditions such as signing a power purchase agreement by the end 2018 and Ørsted’s final investment decision, expected in March 2019.
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