UK Export Finance announces NT$9.2 billion (£230 million) in support for UK businesses supplying a large-scale wind farm off the coast of Taiwan.
- UK Export Finance (UKEF) is a main finance provider in the multinational Formosa 2 project to construct a 376-megawatt offshore wind farm in the Taiwan Strait
- The project forms part of the Taiwanese authorities’ plan to reduce reliance on fossil fuel energy
- UKEF support crucial to securing opportunities for UK companies on the project
Further proof that the UK is a world leader in clean energy with a new offshore wind farm in Taiwan to be built with British expertise and backed by UKEF.
UK Export Finance, the UK’s export credit agency, has today, Tuesday 5 November, announced that it is providing NT$9.2 billion (£230 million) project finance guarantee to support the construction of an offshore wind farm in the Taiwan Strait.
The Formosa 2 wind farm project is led by Macquarie’s Green Investment Group and Swancor Renewable Energy, and involves the construction of 47 new turbines generating 376 megawatts of green energy, forming part of the Taiwanese authorities’ target of generating 20% of its power from renewable sources by 2025.
As a result of UKEF’s support for this project, UK companies will be involved in the construction of the Formosa 2 offshore wind farm, helping to unlock the export potential of this growing sector of the UK economy.
The UK is one of the world’s largest generators of offshore wind energy. It is home to the largest offshore wind farm in the world, the Walney Extension off the Cumbrian Coast, and is responsible for over 44% of Europe’s offshore wind energy.
UKEF has provided its support in New Taiwanese Dollars, one of over 60 currencies in which UKEF can offer financing, protecting the buyer from market fluctuations and making sourcing from the UK more attractive.
Louis Taylor, Chief Executive of UK Export Finance said: “The UK is a world leader in the generation of offshore wind energy, and UK Export Finance is committed to maximising opportunities for our world-class companies in this sector. By supporting this project, UKEF is making these opportunities a reality in new markets while helping Taiwan reduce its reliance on fossil fuels.”
Mark Dooley, Global Head of Macquarie’s Green Investment Group, the lead project sponsor, said: “Macquarie’s Green Investment Group is a leading global investor and developer in the renewable energy sector. We’ve supported 16 offshore wind projects across the globe, including almost 50% of the UK’s offshore wind capacity in operations or under construction. “We’re delighted to have UKEF on board as a main finance provider. Its support will play an important role in the delivery of Formosa 2 and help the UK’s outstanding offshore wind supply chain to benefit from the project alongside our local Taiwanese partners.”
Natalie Black, HM Trade Commissioner for Asia Pacific, said: “I’m delighted UKEF’s first project in overseas offshore wind is taking place in the Asia Pacific region. “The support means more British companies have won contracts in the Formosa 2 development and are strongly placed for future Taiwanese projects. “The deal not only gives the UK and UK businesses an even stronger foothold in Taiwan’s offshore wind market, but also the wider region as new opportunities emerge in markets such as Japan, South Korea and Vietnam.”
Taiwan is currently developing 5.5GW of offshore wind up to 2025 and has an ambition of a further 5GW up to 2030. Many international companies working in offshore wind, including 18 from the UK, have set up operations in Taiwan to help develop the local industry in collaboration with Taiwanese partners
About UK Export Finance:
The UK’s export credit agency and a government department, working alongside the Department for International Trade as an integral part of its strategy and operations. It exists to ensure that no viable UK export should fail for want of finance or insurance from the private market. It provides finance and insurance to help exporters win, fulfil and ensure they get paid for export contracts. Sectors in which UKEF has supported exports include: infrastructure, aerospace, healthcare, telecommunications, transport and industrial development.