Orsted sells 50% of its stake in Taiwan's wind farm for $1.64 billion

Orsted, a Danish company, announced on Wednesday that it had agreed to sell to Taiwanese Cathay Life Insurance a 50% share in its Greater Changhua 4 off-shore wind farm for approximately 11.6 billion Danish crowns (1.64 billion dollars).

Orsted is building the 920 megawatt offshore wind farms Greater Changhua 2, 3 and 4. The company expects to complete the project by 2025.

Orsted stated that the total price of the sale includes the 50% ownership stake as well as the commitment to finance 50% of the costs of the wind farm.

In an effort to restore investor trust, the offshore wind leader reduced its investment and production targets in February and suspended dividend payments as part of major review.

Orsted stated that it will retain the remaining 50% of the ownership stake in the windfarm.

It added that the transaction amount would be paid between 2024 and 2025.

The Greater Changhua 2b & 4 offshore wind farms will be located near the Greater Changhua 1 & 2a which are currently in operation.

Orsted says that the 1,82 GW Greater Changhua off-shore wind cluster could power two million households in Taiwan. ($1 = 7.0847 Danish Crowns) (Reporting and editing by Terje Solsvik & Shri Navaratnam).

(source: Reuters)