UK Export Finance Supports Formosa 2 with GBP 230 Million

UK Export Finance (UKEF) has provided an NT$ 9.2 billion (GBP 230 million) project finance guarantee to support the construction of the Formosa 2 offshore wind farm in Taiwan.

As a result of the support, UK companies will be involved in the construction of the 376MW wind farm, helping unlock the export potential of the sector, the UK Government said.

UKEF provided its support in New Taiwanese Dollars, said to protect the buyer from market fluctuations and make sourcing from the UK more attractive.

“I’m delighted UKEF’s first project in overseas offshore wind is taking place in the Asia Pacific region,” said Natalie Black, HM Trade Commissioner for Asia Pacific.

“The support means more British companies have won contracts in the Formosa 2 development and are strongly placed for future Taiwanese projects. The deal not only gives the UK and UK businesses an even stronger foothold in Taiwan’s offshore wind market, but also the wider region as new opportunities emerge in markets such as Japan, South Korea and Vietnam.”

Formosa 2, developed by Macquarie Capital (75%) and Swancor Renewable Energy (25%), will comprise 47 Siemens Gamesa 8.0 – 167 turbines located off the coast of Miaoli.

The 376MW project reached financial close at the end of October. Total funding for the project of TWD 62.4 billion will be financed by a consortium of 20 international and local Taiwanese financial institutions.