REG-Ørsted A/S Ørsted takes final investment decision and is ready to build Greater Changhua 2b and 4 offshore wind farms

Oersted A/SAnnouncement

31/03/2023 06:15

============

   Ørsted A/S (Orsted)
   Ørsted takes final investment decision and is ready to build Greater
   Changhua 2b and 4 offshore wind farms

   31-March-2023 / 07:01 CET/CEST

   ══════════════════════════════════════════════════════════════════════════

   31.3.2023 07:01:14 CEST | Ørsted A/S | Investor News

   Ørsted has taken the final investment decision (FID) on its 920 MW Greater
   Changhua 2b and 4 offshore wind farms in Taiwan with a timeline for
   completion by the end of 2025.

   The 920 MW grid capacity of Greater Changhua 2b and 4 was  1 awarded in
   June 2018 in Taiwan’s first competitive price-based auction with no
   mandatory local content requirements. Ørsted subsequently secured
   long-term revenues for the projects by  2 signing a corporate power
   purchase agreement (CPPA) in July 2020 with Taiwan Semiconductor
   Manufacturing Company Limited (TSMC), which is the largest-ever contract
   of its kind in renewable energy. 

   Greater Changhua 2b and 4 has a robust business case which will create
   long-term value for Ørsted stakeholders. Good visibility on the costs has
   been achieved by utilising Ørsted’s network of regional and global supply
   chain relationships.

   The Greater Changhua 2b and 4 projects will be funded by capital provided
   by the Ørsted Group combined with debt capital sourced from the domestic
   Taiwanese market – backed by an Ørsted A/S parent company guarantee.

   Per Mejnert Kristensen, President of Ørsted Asia Pacific, says: “Today’s
   positive investment decision demonstrates that Ørsted is primed and ready
   to build and operate large-scale offshore wind projects in Taiwan. Our
   experience in Asia Pacific combined with our technical expertise,
   financial capabilities and close collaboration with stakeholders gives us
   full confidence that we will fulfil our commitments to the grid contract
   with the Taiwan authorities and the CPPA with TSMC. This final investment
   decision is a major step forward for our mission to accelerate Asia
   Pacific’s decarbonisation journey.”  

   Christy Wang, General Manager of Ørsted Taiwan, says: “In dynamic market
   conditions, our highly capable teams have overcome challenges from site
   conditions, infrastructure, project engineering and procurement to bring
   the Greater Changhua 2b and 4 projects to a successful final investment
   decision. We are proud that the projects will implement the latest
   environmentally friendly technology of suction bucket jacket foundations
   for the first time in Asia Pacific. With support from our suppliers and
   stakeholders, the Ørsted team is ready to open a new chapter for offshore
   wind in Taiwan in harmony with nature and communities.” 

   Located approximately 35-60 km off the Changhua coast, the Greater
   Changhua 2b and 4 offshore wind farms have obtained all environmental
   impact assessment approvals. The Greater Changhua 2b and 4 offshore wind
   farms are expected to begin onshore construction in 2023 with fabrication
   of components in 2023-2024 and completion of offshore construction
   expected by the end of 2025.

   Facts about Greater Changhua 2b and 4 

   •    Capacity: 920 MW
   •    Location: 35-60 km off the coast of Changhua County, Taiwan
   •    Water depth: 23.8 m - 44.1 m 
   •    Size of the wind farms: 185 km2
   •    Wind turbine capacity: 14 MW
   •    Expected completion: end of 2025

   About Ørsted in Taiwan 

   Operational projects

   Formosa 1

     • Ørsted is the biggest shareholder and co-owner of Taiwan’s first
       commercial-scale offshore wind project, Formosa 1, which was extended
       from a capacity of 8 MW to 128 MW in 2019.

   Construction projects

   Greater Changhua 1 and 2a

     • The Greater Changhua 1 and 2a offshore wind farms are located 35-60 km
       off the coast of Changhua County and have a capacity of approx. 900 MW
       to provide clean energy to one million households. Ørsted expects to
       commission the last of the wind farms’ turbines in 2023.
     • The 605 MW Greater Changhua 1 is co-owned by Ørsted (50 %) as well as
       Caisse de dépôt et placement du Québec (CDPQ) and Cathay PE, with a
       combined ownership stake of 50 %.
     • Greater Changhua 1 hosts the world-first pilot ReCoral by ØrstedTM, a
       project that sets out to discover whether offshore wind turbine
       foundations could provide an additional new home where corals have the
       potential to flourish.

   Greater Changhua 2b and 4

     • Ørsted was awarded the 920 MW Greater Changhua 2b and 4 offshore wind
       farms in June 2018. A corporate power purchase agreement was signed
       with Taiwan Semiconductor Manufacturing Company Limited (TSMC) in July
       2020. The Greater Changhua 2b and 4 offshore wind farms are expected
       to be completed by the end of 2025.

   Development projects

     • Ørsted is developing a leading portfolio of offshore wind sites and
       has secured approvals of environmental impact assessments for them so
       they can compete in future tenders in Taiwan.
     • The development projects include the Xu Feng 1, 2 and 3 offshore wind
       projects, which are located 37-62 km off the coast of Changhua County,
       the Wo Neng 1 and 2 offshore wind projects, which are located 42 km
       off the coast of Taichung, and the Greater Changhua 3 project.

   As the world leader in offshore wind, Ørsted has installed more than 1,900
   offshore wind turbines at sea. By the end of 2022, Ørsted had 8.9 GW of
   capacity installed, 2.2 GW of capacity under construction, and a further
   11.2 GW of capacity awarded, resulting in a firm capacity of 22.2 GW. This
   aligns with the company’s ambition of reaching 50 GW installed renewable
   energy capacity by the end of 2030.

   For further information, please contact:

   Media Relations
   Tom Christiansen
   +45 99 55 60 17
    3 tomlc@orsted.com 

   Investor Relations
   Rasmus Keglberg Hærvig
   +45 99 55 90 95
    4 IR@orsted.com 

   About Ørsted
   The Ørsted vision is a world that runs entirely on green energy. Ørsted
   develops, constructs, and operates offshore and onshore wind farms, solar
   farms, energy storage facilities, renewable hydrogen and green fuels
   facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate
   Change A List as a global leader on climate action and was the first
   energy company in the world to have its science-based net-zero emissions
   target validated by the Science Based Targets initiative (SBTi).
   Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's
   shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's
   revenue was DKK 132.3 billion (EUR 17.8 billion).

       Attachments

     •  5 Changhua 2b and 4 FID investor news.pdf

   News Source: Ritzau

   ══════════════════════════════════════════════════════════════════════════

   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   ISIN:          DK0060094928
   Category Code: MSCM
   TIDM:          Orsted
   Sequence No.:  233920
   EQS News ID:   1597733


    
   End of Announcement EQS News Service

   ══════════════════════════════════════════════════════════════════════════

    6 fncls.ssp?fn=show_t_gif&application_id=1597733&application_name=news&site_id=refinitiv2

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=0b4e5e1d2907e86ce7b6e61daa03c5b8&application_id=1597733&site_id=refinitiv2&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=7a4f3c75fad4e56db37414c1b630dd8b&application_id=1597733&site_id=refinitiv2&application_name=news
   3. mailto:tomlc@orsted.com
   4. mailto:IR@orsted.com
   5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=83b73a19755f2d8e185c07e1a74e556b&application_id=1597733&site_id=refinitiv2&application_name=news


============