DONG visits Taiwanese banks on 2.4GW wind project

06 October 2017 - 12:00 am UTC

DONG Energy has visited a number of Taiwanese banks to introduce its planned 2.4GW Changhua offshore wind farms.

Representatives of the Danish renewable giant also liaised with the island’s major financial institutions last week in an attempt to understand “local approaches to green finance,” according to a company email to Inframation.

BNP Paribas, with which Dong Energy has built a relationship with, helped coordinate the meetings. The French bank has, however, yet to be officially appointed as financial advisor for the Changhua project this news service has learnt. 

The move came at a time when DONG is reworking its project proposal for the four offshore wind farms as requested by the local environmental protection authorities.

Taiwan’s Environmental Protection Administration is to hold a second review meeting by the end of November to assess DONG’s revised proposal for final regulatory approval. 

DONG has not decided on how much money it plans to raise from banks to finance the 2.4GW Changhua project at this “very early stage,” and is not not ruling out introducing new equity investors to the project,

Last November, DONG, revealed plans to develop offshore wind farms on four sites between 35 and 60 kilometres off the coast of Changhua, west Taiwan.  

Taiwan’s current administration has laid out plans to add 3GW of offshore wind capacity by 2025 while developers have submitted plans for 22 offshore wind projects with over 10.2GW of capacity. In the last environmental review meeting held in mid September, the EPA gave a green light to only two of the nine offshore wind farms reviewed at that time.     

So far, Taiwan’s only offshore wind turbines are part of the first phase of the 128MW Formosa 1 project, 3km off the coast of Miaoli county. Macquarie Capital and DONG Energy agreed in January to acquire stakes in the project, as reported.

Local financial institutions have since last year cooperated with their global peers in related project financing. Phase I of the Formosa project was backed by a syndicated loan of TWD 2.5bn (USD 76.5m) from Cathay United Bank, EnTie Commercial Bank and BNP Paribas.

Separately, Dong Energy said on Monday it planned to change its name to Ørsted following a transformation from black to green energy.