UK Export Finance (UKEF) is providing a £184m credit guarantee to support the construction of the 495MW Fengmiao 1 offshore wind farm in Taiwan, securing £55m in manufacturing and service export contracts for British suppliers.
Under the agreement, Cadeler will be contracted to supply an installation vessel together with crew, sea-fastening services and crane operators.
This latest Buyer Credit Guarantee from UKEF forms part of a wider US$3.7bn financing package by Copenhagen Infrastructure Partners (CIP).
This involves export credit agencies from Denmark, Netherlands, Poland, Belgium, and Taiwan.
Located off the west-coast of Taichung City, the offshore wind site is due to be completed in 2027.
UKEF is the government’s export credit agency, providing support to help exporters win and deliver new overseas contracts.
Promoting investment into British businesses and employers, UKEF’s decision to back the project supports this government’s Plan for Change to boost economic growth across all regions and promote the UK’s clean-growth expertise.
Business and Trade Secretary Jonathan Reynolds said: “Being absolutely committed to delivering economic growth under the Plan for Change means we are using every tool at our disposal to enable British businesses to succeed.
“This deal harnesses the power of commerce to drive the energy transition whilst securing lucrative new opportunities for UK businesses and supporting job creation in local communities.”
Mikkel Gleerup, chief executive at Cadeler, added: “We are grateful to UKEF for the support they are providing to the Fengmiao 1 Project – an important milestone in Cadeler’s continued expansion into Taiwan’s offshore wind market.
“UKEF’s backing highlights the importance to Cadeler and its clients of our operations in the United Kingdom, with our UK-owned installation vessels and East Anglia-based team supporting offshore wind development both at home and abroad.
“Cadeler remains committed to advancing offshore wind in the APAC region and beyond.”
Thomas Wibe Poulsen, partner and head of Asia-Pacific at CIP, said: “Financial close on Fengmiao I is the culmination of years of hard work and dedication from the project team, suppliers, contractors, banks, ECAs and offtakers.
“It is the first offshore wind project in Taiwan to be supported by a portfolio of corporate offtakers in Taiwan and Fengmiao I sets a new benchmark for the country’s rapidly maturing offshore wind market.”