Mitsui & Co and Northland Power Inc (北陸能源) are to invest in a ￥960 billion (US$6.5 billion) offshore wind project off Taiwan’s east coast that would generate enough electricity for 1 million households.
Seventy-three large turbines would be installed in the offshore area about 45 to 70km off of Changhua County, with power being produced from the end of 2025 and the project being completed a year later, the Japanese company said in a statement released yesterday. Mitsui would have a 40 percent shareholding in the development, which would have a 1,022 megawatt capacity.
The rest of the Hai Long Offshore Wind Power Project (海龍離岸風電計畫) would be owned by Northland, a Canadian company, Mitsui said.
Agreements have been signed to sell the green electricity to Taiwan Power Co (台電) under a 20-year power purchase agreement (PPA) and to a private power user in Taiwan under a 30-year PPA.
The investment decision comes as soaring costs derail offshore wind projects around the globe, even as demand for renewable power has jumped. Mitsui, one of the largest Japanese trading houses, is trying to move away from fossil fuels, while Taiwan is targeting 5.6 gigawatts of offshore wind capacity by 2025, up from just 237 megawatt in 2021.
Mitsui plans to invest ￥260 billion in the project, while ￥540 billion would be raised via financing, it said. The company’s shares fell 1.9 percent as of 2:21pm in Tokyo yesterday, outpacing a 0.5 percent drop in the Nikkei index.
Separately, the Hai Long Offshore Wind Project announced yesterday that it has signed credit agreements for NT$118 billion (US$3.67 million) in long-term financing. Once financing is completed, it would be the largest offshore wind project financing to date in Taiwan and the Asia-Pacific region, according to a statement posted on its Web site. This not only signifies a big milestone for the project, but also demonstrates a new page for the nation’s green finance.
The project is expected to be connected to the power generation grid between 2025 and 2026, the statement said. Creating more than 5,000 jobs throughout its lifetime, the Hai Long Project would become the largest single wind farm in Taiwan and supply electricity to more than 1 million households, it said.
DEJA VU: Echoing the probe into real-estate giant Evergrande Group, the bank is under Beijing police scrutiny after last week, telling investors it is ‘severely insolvent’ Chinese authorities said they recently opened criminal investigations into Zhongzhi Enterprise Group Co’s (中植企業) money management business, days after the embattled shadow banking giant revealed a shortfall of US$36.4 billion in its balance sheet. Police in Beijing said in a statement on WeChat that they took “criminal mandatory measures” against multiple suspects, identifying one by their last name, Xie (解). They urged investors to report cases or provide leads to the authorities, including filing complaints online. Xie Zhikun (解直錕), the group’s founder, died in 2021, but several of his relatives are executives at the company. The statement did not elaborate on what
CONSIDERATIONS: The NSTC instructed the park to assist laid-off workers and urge companies to use furlough programs to ease the effects of falling demand Firms in the Hsinchu Science Park (新竹科學園區), which houses major tech companies, reported laying off 496 employees last month amid weakened global demand, Hsinchu Science Park Bureau director-general Wayne Wang (王永壯) said yesterday. Wang told a news conference that 48 companies in the science park laid off employees last month, including one hard disk supplier which let go 241 employees as part of a plant closure due to falling demand. Other companies reported sporadic layoffs as they adjusted to weakening demand, he said. Wang made the remarks after local media reported the layoffs over the weekend. Although the global economy is struggling with high
Yageo Corp (國巨), the world’s third-largest multilayer ceramic capacitor supplier, said that it had acquired France-based Schneider Electric’s sensor business in a deal worth about 723 million euros (US$788.26 million). The acquisition of Telemecanique Sensors early this month matched Yageo’s shift in strategy to offer premium products, the company said in a statement on Tuesday. Yageo expects the deal to broaden its product portfolio and raise its gross margin substantially next year, given that Telemecanique Sensors focuses on making higher-margin chips for industrial devices, the company told investors during an online conference on Oct. 26. Yageo’s gross margin fell to 33.2 percent last
NEW TREAD: The Taiwanese shoe brand paired with TSMC to turn silicon waste into a circular economy good, following its success making shoes from coffee grounds Ccilu International Inc (馳綠國際), a Taiwan-based footwear brand, has become the first company in the world to turn silicon waste from contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) into eco-friendly shoes. Last year, the global footwear industry saw the first pair of pressure-relief slippers made from recycled silicon waste by Ccilu. The brand continued to unveil follow-up collections, including sports shoes and massage slippers made from the same materials. In an interview with CNA, Ccilu CEO Wilson Hsu (許佳鳴) recalled the company’s innovation of the first pair of slippers made from silicon waste after its silicon waste treatment partner, Semisils Applied Materials