Taiwan's Hai Long Offshore Wind Secures NT$55 Billion Debt Financing

en.Wedoany.com Reported - On August 11, Taiwan's Hai Long offshore wind project completed NT$55 billion in New Taiwan dollar-denominated debt financing with a 20-year term. According to the financing structure disclosed by project shareholder Northland Power, approximately C$900 million of this represents new funds that can be used for subsequent expenditures before project completion; approximately C$1.5 billion will be used to refinance existing debt. The current round of financing, together with pre-grid-connection revenue, is expected to cover future funding requirements.

This financing round was completed within the project's original financing framework. A total of 17 financial institutions provided new debt, of which six original lenders—Taipei Fubon Bank, HSBC, Crédit Agricole CIB, CTBC Bank, DBS Bank, and King's Town Bank—increased their commitments, while 11 banks, including Mega Bank, Chang Hwa Bank, the Export-Import Bank of Taiwan, Hua Nan Bank, and Taiwan Land Bank, joined for the first time. Including the original lenders and seven export credit agencies, the total number of financial institutions supporting the Hai Long project has increased to 35.

In 2023, the Hai Long project signed a non-recourse project financing agreement of NT$118 billion with a term exceeding 20 years. This arrangement does not allocate the full NT$55 billion as new construction funds; rather, it simultaneously completes incremental financing and debt refinancing to adjust the project's capital structure and financing costs. The overall project cost remains in line with original expectations.

Hai Long is jointly developed by Japan's Mitsui & Co., Canada's Northland Power, and Malaysia's Gentari, with shareholdings of 40%, 30.6%, and 29.4%, respectively. Located approximately 45 to 70 kilometers off the coast of Changhua County, Taiwan, the project comprises three sites—Hai Long 2A, Hai Long 2B, and Hai Long 3—with a total installed capacity of 1,022 MW and plans to install 73 offshore wind turbines.

Construction has entered its final phase. All 21 turbines at Hai Long 2A were installed and connected to the grid by the end of 2025, and all 16 turbines at Hai Long 2B were also fully installed during the same period; the first turbine at Hai Long 3 was installed offshore in March 2026. All 73 nacelles required for the project have been assembled at Siemens Gamesa's Taichung nacelle assembly plant.

In April, Northland Power signed a new 30-year corporate power purchase agreement with TSMC. Once the relevant administrative procedures are completed, TSMC will offtake the full generation capacity of the Hai Long project. The project company plans to complete all construction and grid connection by the end of 2026, and Northland Power expects the project to enter commercial operation in 2027.