Macquarie Capital And DONG Energy To Invest Into Swancor Renewable’s Taiwanese Wind Farm

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An agreement has been signed between Macquarie Capital and DONG Energy to acquire a 50% and 35% ownership interest respectively in the Taiwanese offshore wind project Formosa 1 from local developer Swancor Renewable.

Completion of the transaction is subject to a number of conditions precedent, including EU and Taiwan Investment Committee approvals.

The new owners of Formosa I are Macquarie Capital (50%), DONG Energy (35%), and Swancor Industries (15%). Macquarie Capital will work closely with DONG Energy and Swancor Renewable to complete the development and construction of the project. While DONG Energy will provide advisory services, Swancor Renewable will continue to lead the project through site development and construction.

Formosa I comprises two phases. Phase I has a total capacity of 8MW and consists of two turbines installed in October 2016. In Phase II, a further 120MW of capacity is planned to be constructed during 2019, subject to final investment decision. Formosa I is located approximately 3km off the Coast of Miaoli County in North-West Taiwan.

We see great opportunities in Taiwan’s wind energy sector

Hajir Naghdy, Head of Macquarie Capital, Asia and the Middle East, says: “Macquarie Group has a substantial and longstanding commitment to the renewable energy and clean technology sectors, and we see great opportunities in Taiwan’s wind energy sector. We are pleased to be able to partner with Swancor, the leading Taiwanese offshore wind developer on its Formosa I project and with DONG Energy, an industry leader and pioneer in offshore wind power development globally.”

Samuel Leupold, Executive Vice President and CEO of DONG Energy Wind Power, says: “The agreement demonstrates our commitment to the Taiwanese market and to the government’s offshore wind plans. We look forward to engaging in Formosa I and accelerating Taiwan’s first commercial-scale offshore wind project. With Swancor’s local expertise, Macquarie’s strong track record in renewables, and DONG Energy’s 25 years of experience in offshore wind, we have formed a strong partnership to execute on this project.”

Robert Tsai, Chairman and CEO of Swancor Group, says: “As a pioneer of Taiwan offshore wind development, we try to integrate international experience with local expertise. It’s our pleasure to have Macquarie and DONG Energy joining Formosa I. This remarkable partnership will help to push forward the delivery of this project.”

Matthias Bausenwein, General Manager for DONG Energy Asia-Pacific says: “Offshore wind will be a key component in Taiwan’s future energy mix, and Formosa 1 is an important milestone for a successful deployment of offshore wind in Taiwan. We are happy to contribute to its realisation and bring our experience as global market leader to the project. This project will enable DONG Energy to gain fast track development, construction and operational experience in a new market, which we will leverage for further activities in Asia.”

With the combination of Macquarie Capital and DONG Energy together with Swancor Renewable, Formosa I will leverage their respective expertise to collaborate on the design, investment, engineering, procurement and construction (EPC), operation and maintenance (O&M) and financing. The combination of the three companies will help to bring a strong partnership to the Taiwan offshore wind energy market.