Siemens Gamesa and Hai Long Offshore Wind Project signed two agreements at the Energy Taiwan trade fair in Taipei on Thursday marking Siemens biggest deal in the country.
Encompassing 1,044 MW for three offshore wind power projects in Taiwan, both the Turbine Supply Agreement and Service and Availability Agreements confirm the parties’ commitments to the market, said Siemens. The signing covering the Hai Long 2A (300 MW), Hai Long 2B (232 MW), and Hai Long 3 (512 MW) projects are Siemens Gamesa’s largest offshore wind power signing in Taiwan to date.
73 SG 14-222 DD offshore wind turbines are intended to be deployed. A 15-year service contract is included in the signed agreement, with an option to extend it to 20 years. Among other items, Siemens Gamesa will provide offshore logistics and the operations and maintenance service facilities for all three projects. Hai Long has granted Limited Notice to Proceed with the signing of the Turbine Supply Agreement. The issuance of the full Notice to Proceed and subsequent booking of the Hai Long projects as a firm order for Siemens Gamesa is expected in calendar year 2023.
The SG 14-222 DD offshore wind turbines are planned to be installed 50 km off the coast of Changhua County. Each turbine will have a capacity of 14 megawatts and feature a rotor diameter of 222 meters. It uses 108-meter-long Siemens Gamesa IntegralBlades.
“The Siemens Gamesa – Hai Long collaboration lights the way for more great developments in the Taiwanese offshore wind industry. We’re keen to deliver these projects and extend our position in leading the Taiwanese offshore revolution. We’re also excited that our expanded offshore facility in Taichung will be able to support this agreement following its intended conversion into a firm order,” said Marc Becker, CEO of Siemens Gamesa’s offshore business.
Siemens Gamesa announced the expansion of its offshore nacelle assembly facility in Taichung on September 21, 2022. The factory expansion will more than triple the plot area up to approx. 90,000 m2, as well as more than triple the number of Siemens Gamesa people working in the factory. The expansion will broaden the production scope with new production halls to be constructed on the extended plot. The extended factory is expected to begin operation in calendar year 2024. It released Taiwan’s first locally assembled offshore wind turbine nacelle in August 2021.
The Hai Long offshore wind undertaking consists of three separate projects: Hai Long 2A (300 MW), Hai Long 2B (232 MW), and Hai Long 3 (512 MW). Hai Long 2A is subject to localisation requirements. Supporting the sustainable establishment of the local Taiwanese supply chain, Hai Long and Siemens Gamesa decided to expand the localisation opportunities on Hai Long 2B and Hai Long 3. One example is Taiwanese production of nacelles, including local sourcing of key components.
“It has been a long journey from the award of these projects to this milestone today. It is the result of great collaboration with our customer and partners, and within our own teams. We look forward to locally manufacturing the SG 14-222 DD for the 1,044 MW Hai Long offshore wind projects in Taiwan,” said Niels Steenberg, Siemens Gamesa General Manager for Offshore in Asia Pacific. “With the expansion of our offshore nacelle assembly facility in Taichung, we remain fully committed to Taiwan. We’re supporting the Industrial Relevance Plan by the Taiwanese government in establishing a local offshore wind supply chain, cultivating more local talents, and efficiently unlocking a lower cost of electricity for the market,” he added.
Hai Long Offshore Wind’s project director Felipe Montero stated: “As the Hai Long Project approaches financial close and the start of the execution phase, the signature of the contracts with Siemens Gamesa mark a hugely important milestone for us. The Turbine Supply Agreement is both the biggest construction contract that will ever be awarded for the Hai Long Project, as well as an enabler of the expansion of Siemens Gamesa’s nacelle factory. This plays a crucial role in our localisation efforts, and shall become a cornerstone of Taiwan’s local offshore wind supply chain. We’re delighted to make our contribution to this and are looking forward to the execution of Hai Long with Siemens Gamesa.”
The Hai Long consortium is a partnership between Canadian independent power producer Northland Power Inc. and Taiwan-based developer Yushan Energy Co., Ltd., jointly owned by Mitsui & Co., Ltd. in Japan and Yushan Energy Pte., Ltd. in Singapore.
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