Canadian developer Northland Power and Japanese trading conglomerate Mitsui have secured a credit agreement for around C$5 billion (US$3.7 billion) to finance the 1GW Hai Long wind project in Taiwanese waters.
The partners now expect financial close on the offshore wind farm to "follow shortly".
Northland expects the project to produce strong cash flow and operating income once it comes fully online, which is due in either 2026 or 2027.
The C$5 billion finance package was provided by over 15 international and local lenders and supported by export credit agencies from six countries. Once the deal closes, the total debt and equity for the entire Hai Long project will be funded, Northland stated.
The Hai Long project consists of three separate wind farms – the 300MW Hai Long 2A, 232MW Hai Long 2B and 500MW Hai Long 3 projects. All three wind farms are located between 50km and 60km off Changhua county in the Taiwan Strait.
Northland estimates total project costs at C$9 billion. The remaining funding is coming from Northland and Mitsui, plus Gentari International Renewables – the clean energy unit of Malaysian oil and gas firm Petronas – buying into the project.
When the Gentari deal closes in the fourth quarter of 2023, Mitsui will own 40% of Hai Long, Northland Power will own 30.6% and Gentari will own 29.4%.