Total is to acquire almost a quarter stake in an offshore wind development currently under construction off Taiwan.
The French supermajor, which is planning to rebrand as Total Energies to reflect its diversifying portfolio, has signed an agreement with German firm wpd to acquire a 23% interest in Yunlin Holding GmbH, the owner of Yunlin offshore wind farm.
In return, Total will pay wpd a consideration based on it share of past costs.
The acquisition, which is subject to government approval, will broaden Total’s portfolio of offshore wind projects under development and construction – it currently sits at a cumulative capacity of about 5.5 gigawatts (GW).
Yunlin, which will comprise 80 turbines, is currently under construction around 125 miles southwest of Taipei.
The 640 megawatt (MW) project benefits from a 20-year guaranteed-price power purchase agreement (PPA) with the state-owned company Taipower of $250/MWh for the first 10 years and $125/MWh for the following 10 years.
Construction is scheduled to be completed in 2022.
Once on stream, the project will produce 2.4 terawatt hours (TWh) of renewable electricity per year, enough to power 605,000 households.
Procurement of the main components has been finalised and marine works are under way, with the project installing its first turbine last week.
Identified by Taiwan’s authorities as a key area in the development of renewable energies, offshore wind power will be a significant contributor to the objective of generating 20% of its electricity from renewables by 2025.
Taiwan is one of the priority regions selected by Total for its development in offshore wind power in Asia.
Total’s other offshore wind interests include a 51% stake in the Seagreen offshore wind farm off the coast of Angus, Scotland. The 114 turbine project will be the largest of its kind in Scotland upon completion.
Stéphane Michel, president gas, renewables & power at Total, said: “This agreement provides Total with an opportunity to gain a foothold in one of Asia’s main offshore wind markets and strengthens the Group’s position in this fast-growing segment, in line with its strategy of profitable development in renewables worldwide.
“Taiwan has been a pioneer in developing offshore wind power in Asia, and we are proud to contribute to the transformation of its energy mix. We are delighted to enter into this first partnership with wpd, one of the leading independent developers of offshore wind power.”