UK Export Finance (UKEF) has announced £230 million project finance guarantee to support the construction of the Formosa 2 offshore wind farm off the Taiwanese coast.
The 376MW, 47-turbine project is led by Macquarie’s Green Investment Group (GIG) and partner Swancor Renewable Energy, as part of a consortium of 20 investors.
The project is part of Taiwan’s target of generating one-fifth of its electricity from renewables by 2025, with 5.5GW of offshore wind under construction expected to be operational by the target date, and a further 5GW targetted by 2030.
The project is expected to cost approximately £1.6 billion ($2,05 billion) by completion.
Siemens Gamesa will supply turbines for the project, specifically its SG 8.0-167 DD offshore wind turbines.
The move is likely to be seen as a positive one for the UKEF after it shut down calls from the UK’s Environmental Audit Committee to end support for overseas fossil fuel energy projects, despite investment increasing almost a dozen times over in just two years.
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UKEF Chief Executive Louis Taylor 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.”