JERA, one of Japan’s largest public utilities, has become the largest shareholder in Formosa 3, an offshore wind project being developed by Macquarie’s Green Investment Group and German energy supply company EnBW Energie Baden-Württemberg.
JERA acquired 31.25 percent from GIG and 12.5 percent from EnBW, a spokesman for the Japanese company told Infrastructure Investor. Financial details of the deal were not disclosed.
Formosa 3 is the largest offshore wind farm planned in the Changhua region off the central western coast of Taiwan. Its potential capacity is up to 2GW, three times larger than Ørsted’s 659MW Walney Extension Offshore Wind Farm in the Irish Sea, currently the world’s largest offshore wind farm in operation.
According to the Formosa 3 website, the project will generate enough green energy to power the equivalent of 1.5 million-2 million homes, while displacing approximately 2,670 kilotons of CO2 emissions every year while in operation.
Under the agreement, GIG and EnBW will retain a respective 31.25 and 25 percent stake and continue to be involved in the project’s development, according to the two sellers.
GIG and EnBW intend to pursue capacity in Taiwan’s next round of grid allocations, expected in 2020. Formosa 3 achieved its Environmental Impact Assessment approval from the Taiwanese government in 2018, according to GIG.
The move marks a continuation of JERA’s and GIG’s partnership, which began when the Japanese company partnered with GIG in December 2018, by investing in Formosa 1, Taiwan’s first commercial-scale offshore wind farm with a generating capacity of 128MW.
Last October, JERA acquired a 49 percent stake in the 376MW Formosa 2 project, which is expected to become operational by the end of 2021.