Nikkei: Japans' 3 megabanks to provide loans to Taiwan's CFXD wind project
By WindTAIWAN / 2020-01-08
MUFG Bank, Sumitomo Mitsui Banking and Mizuho Bank, along with Deutsche Bank and HSBC, will jointly provide a total of nearly 100 billion yen in loans to 600MW wind farm in Taiwan's Chunghua County
According to the report of the Japan Economics Newspaper, “The Nihon Keizai Shinbun”, Japanese Government will collaborate with MHI Vestas to help Changfang and Xidao wind farm projects.
Three major Japanese banks will extend the mortgage contract of MHI Vestas, a joint venture composed by a Japanese and a Danish firm, in order to export wind turbine blades. Nippon Export and Investment Insurance (NEXI), a Japanese insurance corporation owned by Japanese government, will provide a trade insurance as part of the loans. The associated partners of this project expect to apply the term in Taiwan who is in the leading position of offshore wind energy in Asia Pacific region, as a foothold for Japan to expand their Asian market.
The project is developed by CiP, with 600MW capacity on the outlying sea area of Changhua county. The project will partially perform in 2022, and launch commercial operation in 2024. The cost of the wind farm construction is approximately 3.7 billion US dollars.
The contract is signed today (1/8). Mitsubishi UFJ Financial Group Bank, Sumitomo Mitsui Banking Corporation, and Mizuho Bank will conjoin with Deutsche Bank and HSBC Bank to make a loan around 100 billion JP Yens (about 920 million USD, equivalent to 27.7 billion NTD). In addition, NEXI will also provide an insurance money of 45 billion JPY (4.2 billion USD). The insurance is considered to be the largest number among renewable energy transactions in Japan.
Taiwan aims to complete 5.7 GW capacity in 2025, meanwhile, Japan is anticipating 0.8 GW (800,000 kW) in 2030. Last June, Japanese Government enacted a “Infrastructure Export strategy” to encourage the export of the infrastructures related to renewable energy and hydrogen fuel. The government also expect their firms to develop correlated technology and expertise by joining Taiwan’s offshore wind project.
As the offshore wind market rising around the world, IRENA estimated that the total capacity of offshore wind energy will boost ten times of current capacity to 228 GW. Although Europe is the leader in offshore wind industry and market, Asia, with fossil fuel as a main energy supply, will be the next thriving market of offshore wind energy.