Japan Bank for International Cooperation (JBIC) is taking an equity stake in the Hai Long offshore wind project in Taiwan.

The move follows the signing in late September of a NT$118 billion (US$3.6 billion) debt package for the project, to which JBIC contributed US$677 million.

JBIC says its equity participation in the project is in line with the Government of Japan‘s Infrastructure System Overseas Promotion Strategy 2025, which seeks to promote Japanese infrastructure exports.

Mitsui & Co will be involved in the operation and management of the plant for the long term.

Under a shareholders‘ agreement, JBIC and Mitsui & Co will invest in the Netherlands-registered company MIT Wind Power (MWP). JBIC’s portion is NT$8.8 billion.

JBIC is also providing a guarantee for part of an onshore equity bridge loan extended by Taiwanese financial institutions to MWP’s investees during the construction period. The total principal amount covered by the guarantee is NT$8.4 billion.   

In this project, Hai Long 2 Offshore Wind Power and Hai Long 3 Offshore Wind Power, in which Mitsui and Northland Power of Canada are the main investors, will build, own, and operate a 1,022-megawatt offshore wind farm off the coast of Changhua County in Taiwan.

The strong Japanese support for Hai Long comes at a time when offshore wind projects around the world are facing cost pressures, leading to the cancellation of some projects and a reduction of activity in the sector by major global offshore wind developers.

Under its Pathway to Net-Zero Emissions, Taiwan aspires to increase the proportion of renewable energy in its power supply to 60% to 70% by 2050.