Denmark-based global offshore wind developer Ørsted is set to divest a 50% stake in its offshore wind farm project in Taiwan and has signed an exclusivity agreement with a Taiwanese insurance company and its affiliate, following a competitive divestment process.
Ørsted said Tuesday it had signed an exclusivity agreement with Cathay Life Insurance, and its affiliate as preferred bidders for the acquisition of a 50% ownership stake in total of Ørsted’s 583 MW Greater Changhua 4 Offshore Wind Farm in Taiwan.
Ørsted and Cathay Life Insurance have agreed to an exclusivity period lasting until January 17, 2024, during which both parties will finalize negotiations of the transaction documents and confirmatory due diligence.
Under the Taiwan Stock Exchange disclosure rules, Cathay Life Insurance is required to make a public announcement upon being selected as the preferred bidder.
Subject to the signing of the transaction, the completion of the divestment will be subject to regulatory approvals from the Taiwanese authorities.
In total, Greater Changhua 2b and 4 will have a capacity of 920 MW, and Ørsted took the final investment decision (FID) on these projects earlier this year. The wind farms are under construction and expected to be completed by the end of 2025.