COP led offshore wind project Changfang Xidao in Taiwan reaches Financial Close

COP led offshore wind project Changfang Xidao in Taiwan reaches Financial Close

Copenhagen Offshore Partners (COP) has since 2017 been on ground in Taiwan to lead the development of the Changfang Xidao project from joint CIP/COP offices located in Taipei. COP has established a specialist offshore wind team comprising 70 people in Taipei covering all aspects of the project including permitting, engineering, design, procurement and stakeholder engagement to secure project financing.

The Changfang and Xidao project is owned by CIP managed Funds CI II and CI III and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance and TransGlobe Life Insurance. CIP has tasked COP to lead the project through its construction phase with expected start of commercial operations in Q1 2024.

The Changfang and Xidao project has contracted experienced international and local contractors under 8 key construction agreements. The project received approval of its local content plan in December 2019 by the Taiwan government and is the offshore wind project with the highest localization percentage in the Asia Pacific region. The Changfang and Xidao project will localize the jacket foundation, pin piles, onshore sub station, transport and installation contracts and more than 15 wind turbine components. The wind turbines will be supplied by MHI Vestas who will deliver 62 9.5MW turbines.

“Since we entered the Taiwan offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are therefore proud to deliver the project with the highest extent of localization in Taiwan to date” explained CEO of Changfang Xidao and SVP and Partner in COP, Jesper Krarup Holst.

The 589 MW offshore wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions (including CI II, Taiwan Life Insurance and TransGlobe Life Insurance), as well as 6 export credit agencies. The total project financing raised from the banks and financial institutions amounts to approximately USD 3 billion (NT$ 90 billion).

“Reaching Financial Close for Changfang Xidao is a major milestone for COP. The project is the first that COP has taken from the very early development phase and delivered a bankable project ready for construction to the satisfaction of shareholders, banks and export credit agencies” said COP Co-CEO Henrik Scheinemann.

To support the development, the Changfang and Xidao project has entered into contracts, under COP framework agreements, with the following companies: New Power Partners, PeakWind, Lautec, Wood Thilsted Partners, Bech Bruun and JUM-BO Consulting Group.

About COP

Copenhagen Offshore Partners (COP) is a leading and experienced provider of project development, construction management, and operational management services to offshore wind projects. The company is headquartered in Denmark and has offices in Taiwan, USA, Australia, Japan, and Korea, and is opening offices in Scotland and Vietnam. COP is owned by the management and has 95 employees.

COP’s team of specialists has a broad range of competencies within project management, business development, early and late-stage development, engineering, construction, procurement, and operational management.

COP has a track record of successfully taking offshore wind projects through the most difficult phases and delivering per plan. At top management levels and at senior specialist levels we have gained our experience from more than 20 large-scale European, American and Asian offshore wind projects.

Copenhagen Offshore Partners leverages an extensive network of industry players in the supply chain and has formed close partnerships with specialist-companies within all technical areas.

For more information please contact Partner and Senior Vice President, Jesper Krarup Holst (jkh@cop.dk)