Orsted to divest 50 per cent stake in Taiwan wind farm as part of offshore wind review

Denmark's Ørsted said on Wednesday it has agreed to sell a 50 per cent stake in its Greater Changhua 4 offshore wind farm to Taiwan's Cathay Life Insurance for about 11.6 billion Danish crowns ($1.64 billion).

The site is part of Ørsted's 920 megawatt (MW) offshore wind farms Greater Changhua 2b and 4, which the company is currently constructing and expects to finalise by the end of 2025.

The total sales price includes the 50 per cent ownership share as well as a commitment to fund 50 per cent of the cost of the wind farm, Ørsted said.

Battling to restore investor confidence, the offshore wind industry leader in February trimmed its investment and capacity targets and paused dividend payouts as part of a major review.

Ørsted will continue to own the remaining 50 per cent ownership stake in the wind farm, Ørsted said.

The transaction amount will be paid in 2024 and 2025, it added.

The Greater Changhua 2b and 4 offshore wind farms are located next to the 900 MW Greater Changhua 1 and 2a, which are in operation.

Together, the 1.82 GW Greater Changhua offshore wind cluster can produce enough energy to power nearly two million Taiwanese households, according to Ørsted.

(Reporting by Louise Breusch Rasmussen, editing by Terje Solsvik Shri Navaratnam)