CIP sells its stake in the Taiwanese offshore wind farm
Copenhagen Infrastructure Partners (CIP), on behalf of the Copenhagen Infrastructure II K / S (CI-II) and Copenhagen Infrastructure III K / S (CI-III) funds, announced that it has reached an agreement to sell 25% stake in the wind farm Taiwanese offshore 595 MW Changfang and Xidao (CFXD) to Global Power Synergy Public Company Limited (GPSC), which will acquire the stake through its wholly-owned subsidiary, Global Renewable Synergy Company Limited (GRSC). CI-II and CI-III will continue as majority co-owners of the project and lead the construction phase towards commercial operation in 2024.
GPSC is a subsidiary and an innovative energy flagship of PTT Public Company Limited (PTT), one of Thailand’s largest energy companies. By partnering with GPSC, CFXD also contributes to the new policy towards southern Taiwan by strengthening cooperation between Taiwan and Thailand in the field of renewable energies.
Located 13 – 15 km off the coast of Changhua County in Taiwan, the CFXD wind farm has a planned capacity of 595 MW. CFXD reached financial close in February 2020 and construction of the offshore wind farm with a high share of local Taiwanese content is progressing as planned towards the commercial operation date in 1Q2024. CFXD is funded by a combination of equity and senior loans from a consortium of 25 international and Taiwanese banks and financial institutions, as well as six export credit agencies. CIP acquired the CFXD project in 2017. The project was awarded the grid award in 2018 and entered into a 20-year power purchase agreement (PPA) with state-owned Taiwan Power Company in 2019. Local Taiwanese suppliers and partners include Century Iron & Steel Industrial Company Limited, TECO, Hung Hua Construction and CTCI.
GPSC, through GRSC, will enter the project as a co-owner alongside CI-II and CI-III, as well as local Taiwanese shareholders, who hold a minority stake in the project. CIP will continue to lead the project throughout its construction phase. Once operational, the offshore wind farm will provide clean, renewable energy to more than 600,000 homes per year in Taiwan.
âWe welcome GPSC as a co-investor and partner of CFXD. The transaction highlights the significant potential of offshore wind in Taiwan and other Asian countries and recognizes CIP’s added value to the project during the development phase and the initial construction phase, âsaid Michael Hannibal, partner at CIP .
The transaction is subject to the usual closing conditions, the filing of a foreign investment approval and the filings with the Ministry of Economic Affairs of Taiwan ROC, and after the closing of the transaction, CI-II and CI-III will remain the controlling shareholders and operators of the offshore CFXD. wind farm.
FIH Partners acted as exclusive financial advisor and White & Case acted as legal advisor to CIP on the transaction.
CIP is a fund management company focused on energy infrastructure, including offshore wind, onshore wind, solar photovoltaic (PV), biomass and energy from waste, transportation and distribution, reserve capacity and storage; and other energy assets like Power-to-X. It has around 200 employees and offices in Copenhagen, Denmark; Hamburg, Germany; New York, United States; Tokyo, Japan; Utrecht, The Netherlands; and London, England.
CIP manages eight funds and manages around 16 billion euros. PensionDanmark was the founder and sole investor in CI I and CI A I. Today, CIP funds have around 100 international institutional investors from Nordic countries, Continental Europe, UK, Israel, Asia, Australia and North America and multilateral organizations such as the EIB. .
It was founded in 2012 by senior executives from the energy sector in cooperation with PensionDanmark.
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Read the article online at: https://www.energyglobal.com/wind/15072021/cip-to-divest-stake-in-taiwanese-offshore-wind-farm/