UK Export Finance supports financing deal which will secure UK contracts for cable protection systems and the charter of an installation vessel.
UK Export Finance (UKEF) has, along with other export credit agencies, supported a financing deal for a Taiwanese offshore wind farm which will generate major UK contracts.
Offshore wind developer Ørsted will construct the Greater Changhua 4 Offshore Wind Farm under an engineering, procurement and construction (EPC) contract. UK subcontractors are expected to deliver contracts for cable protection systems and the charter of an installation vessel.
UKEF supported by issuing guarantees for £168 million in debt financing which will be provided by commercial lenders. The department issued the guarantee under its Buyer Credit facility on the condition that Greater Changhua 4 procures from the UK supply chain.
The financing package was originated and structured by Ørsted on behalf of Cathay Life, which is set to acquire a 50% ownership share of Greater Changhua 4 in a transaction with a total value of around DKK 11.6 billion ($1.6 billion). UKEF was one of six export credit agencies to support the transaction with financial guarantees.
UKEF previously guaranteed financing for Ørsted's Greater Changhua 1 Offshore Wind Farm, which is now in full operation at 605 MW. The full complex of wind farms making up the 1.82 GW Greater Changhua offshore wind cluster can produce energy whose effect is equivalent to a total reduction of 3.5 million tonnes of carbon dioxide annually.
Tim Reid, CEO of UK Export Finance, said:
This deal shows UK businesses are valued worldwide as an important part of the renewable energy supply chain. By working with global partners to deliver deals like this, UKEF ensures that these businesses can access even more opportunities at the cutting edge of the energy transition.
Unlocking finance for the energy transition remains a top priority for UKEF and will support our long-term plan for sustainable growth.
Rasmus Errboe, Deputy CEO and Chief Commercial Officer at Ørsted, said in Ørsted's statement:
We're pleased to apply our partnership model in Asia Pacific once again and advance the development of offshore wind in the region with Cathay, with whom we have great collaboration experience. We're satisfied with the transaction as it represents another important milestone in our partnership and divestment programme and ensures further progress towards our mid- and long-term targets.
Export credit is a public financing tool which supports investment in clean energy industries and other growth-driving sectors targeted by the UK's upcoming industrial strategy, to be published in Spring 2025.
This is the fifth time that UKEF has backed a major Taiwanese offshore wind project, securing export opportunities in a major market for renewable energy technology.
