Northland Power to Sell Stake in Taiwanese Offshore Wind Project

December 15, 2022, by Adnan Memija

Canada-based Northland Power has signed an agreement to sell 49 per cent of its interest in the Hai Long offshore wind project in Taiwan to Gentari.

When the deal is completed, expected to occur after the project reaches financial close, Gentari will have a 29.4 per cent indirect equity holding in the Taiwanese offshore wind farm.

Northland will remain the project’s single largest shareholder with 30.6 per cent and will continue to take the lead role in its construction and operation.

This deal marks a significant milestone in the project’s development, allowing Northland to partner with Gentari through equity consideration of approximately NT USD 18 billion (approximately USD 580 million).

Hai Long’s three separate grid allocations include the 300 MW Hai Long 2a, the 232 MW Hai Long 2b, and the 512 MW Hai Long 3.

Located 40-50 kilometres off the coast of Taiwan and with a water depth of 35-55 metres, the Hai Long offshore wind farms are some of the largest wind projects in Taiwan with a total capacity of over 1 GW.

Hai Long Offshore Wind, a consortium comprising Northland Power, Yushan Energy from Singapore, and Japan’s Mitsui & Co., Ltd., expects to begin construction in 2024 and to commission the wind farms in 2025-2026.

For Gentari, Petronas’ clean energy unit, the deal marks the entry into the offshore wind segment. The company has set itself a target to build 30 – 40 GW of renewable capacity by 2030.

“The partnership with Northland offers an opportunity for even greater collaboration in developing other offshore wind opportunities in Taiwan and beyond”, said Mohammad Azhar, Chief Renewables Officer of Gentari.

When it comes to Northland, the company has almost 3 GW of gross capacity for projects that are scheduled for financial close and commencement of construction within the next two years. Once these projects are complete, the company’s total gross capacity will nearly double to more than 6.5 GW by 2027.