Canadian energy company Northland Power has sold 49% of its stake in Hai Long offshore wind project in Taiwan to Gentari International Renewables, a subsidiary of Malaysian clean energy company Gentari,
Following the deal, Gentari owns a 29.4% indirect equity interest in the project, while Northland holds a 30.6% interest in the project, which has 1.02GW of capacity.
The other partners in the project include Mitsui & Co and Yushan Energy Taiwan, holding 20% stake each in the project.
Northland will continue to lead the project through its construction and operational phases.
Gentari has invested about T$23bn ($757m) into the project. The proceeds from the equity transaction will help Northland to repay a C$500m ($375m) previously disclosed credit facility.
To be located between 40 and 50km off the Changhua coast, the offshore wind farm will be built in two phases. with an estimated investment of $6.75bn.
In September this year, Northland secured $3.7bn in 20-year project financing for the project from more than 15 international lenders.
In the subsequent month, Hai Long achieved financial close. Northland's equity contribution is fully funded through its equity program and the partnership with Gentari.
The project is expected to significantly support Taiwan’s target of achieving 15GW of offshore wind capacity by 2035.
Northland Power president and CEO Mike Crawley said: “Northland is delighted to welcome Gentari as an official long-term partner of the Hai Long offshore wind project and believes that they will add significant value.
“Once completed, Hai Long will be the largest offshore wind project in Taiwan and will provide much needed clean energy to the grid and significant long-term, sustainable value to Taiwan’s economy. The project financing for Hai Long close in September was the largest in Taiwan and one of the largest globally.
“This completes Northland’s funding plan for the project, which is a huge milestone for the organization and is a testament to the value of the Hai Long project as an asset and the attractiveness of Taiwan as a market for green investment.”
The investment in the project is part of Gentari’s plan to increase its energy capacity to up to 40GW by 2030.
