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Hai Long Holds Commencement Ceremony for Jacket Foundations, Financing Expected to be in Place This Summer

published: 2023-05-22 9:30

Hai Long Offshore Wind and Century Wind Power Co. (CWP) jointly held a ceremony (May 22nd) at the CWP Taipei Port to celebrate the commencement of 21 jacket foundations. This not only represents steady progress in Hai Long project, but also marks a significant milestone in Taiwan’s push for domestic production.  Hai Long Offshore Wind anticipates securing its NTD 150 billion syndicated loan by the upcoming summer.

The two parties signed a contract in December 2022 where CWP agreed to tailor-make three-legged jacket foundations for the Hai Long project based on the geological conditions of the wind farm. Once completed, the underwater foundation will stand over 90m tall and weigh 2,000 tons, the equivalent of a thousand cars combined. This will establish it as the largest structure of its kind within Taiwan's offshore wind farms.

CWP Chairman Wen-hsiang Lai mentioned that discussions with Hai Long began about three years ago, touching on various critical areas, including environmental safety and quality. After a considerable investment of time and effort, Hai Long finally selected CWP as their preferred supplier for their jacket foundations, leading to this month’s groundbreaking ceremony. Hai Long is set to employ 14 MW wind turbines, regarded as among the largest in the sector, which inherently increases the complexity of the supporting underwater foundations. Hai Long has been instrumental in providing valuable guidance and suggestions to ensure a seamless progression of the project. The delivery of all 21 sets of underwater foundations—collectively producing 300 MW—is scheduled to be completed by 2025.

CWP has received a conditional notice to commence work for the Hai Long project. Following the commencement ceremony, CWP will initiate work including cutting and associated manufacturing processes, focusing on meeting the requirements of the Hai Long wind farm. The concerted efforts of the various factories and subsidiaries under CWP, including CWP’s Taipei Port factory, Century Iron & Steel’s Guanyin and Yunlin plants, as well as Century Huaxin’s Taichung plant, will be engaged in the production of the underwater foundations essential to the Hai Long project. This underscores the project’s commitment to pushing for domestic production and establishing a robust local supply chain.

Addressing the syndicated loan that has been under public scrutiny, the Hai Long Offshore Wind Project reported that their financing efforts are progressing smoothly. Both international and local banks have made advances in their credit procedures. Although the credit approval process is somewhat more prolonged with local banks, CWP anticipates securing its financing by this summer. Shareholders have consistently contributed additional funds to ensure the seamless advancement of the project. Furthermore, major contracts, including the continuous fabrication of onshore substations and the ongoing operations for the submarine cable preparation, have been set in motion. All aspects of the project are advancing in accordance with the projected timeline and maintaining the desired standards of quality.

Initiated in July of last year, Hai Long’s syndicated loan plan south to amass a substantial NTD 150 million with the aim of achieving this target by year-end. However, complications arose when Beibu Energy relinquished its equity shares to Malaysian firm, Gentari, reducing its stake to less than a third. Additionally, Cathay United Bank, a significant investor, confirmed its departure from the syndicated loan case earlier this month. Nevertheless, a glimmer of hope appears to be just on the horizon.

Steadily progressing, the Hai Long project has already set numerous major contracts in motion and construction on the wind farm is well underway. The anticipation is that it will be integrated with the grid and commence power generation in the time frame of 2025 to 2026. Upon completion, the wind farm is set to become Taiwan’s largest wind farm, supplying electricity to more than a million households.

(Image Source: TechNews)

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